Nokia Tight-lipped On Asset Sale, Restructure Rumours
Nokia refused to comment on media reports claiming it was investigating potential asset sales and merger activity, as the company assesses ways to improve its balance sheet.
Initial rumours on Nokia’s future direction came from Bloomberg. Its sources claimed the company was working with advisers on a wide range of strategic options including sales, mergers and reorganisation of investments.
However, unnamed Reuters sources later denied the process was taking place. When contacted by Mobile World Live Nokia declined to comment on the issue.
A potential corporate reorganisation or refocus would not come as a complete surprise given CEO Rajeev Suri’s cautionary comments during its annual results statement earlier this month.
At the time, Suri warned investments were needed in a number of areas with the majority of its profit for 2020 not likely to be delivered until Q4.
In October 2019, the company cut its outlook and announced a hold on dividend payments until its cash position improved.
Suri noted areas of concern included high costs related to its first run of 5G products, price pressure related to the new network technology, the company’s “product mix” and profitability in China.
He added it aimed to “progressively mitigate these issues” in 2020 with the measures expected to improve its financial performance in 2021.
The company already detailed a number of changes taking effect in 2020, with a round of job cuts as part of a previously-announced restructuring plan, and the departure of COO Joerg Erlemeier. The role of COO was eliminated with responsibility handed off to other departments.-Mobile World Live