Stock Update (NYSE:NOK): Nokia Corp (ADR) Agrees to Acquire Alcatel-Lucent Convertible Bonds Through Private Transaction


Nokia Corp (ADR) (NYSE:NOK) agreed to acquire 72 994 133 of the EUR 688 425 000.00 Alcatel-Lucent bonds convertible into new Alcatel-Lucent shares or exchangeable for existing Alcatel-Lucent shares due on January 30, 2019 (the “2019 OCEANEs”) and 19 943 533 of the EUR 460 289 979.90 Alcatel-Lucent bonds convertible into new Alcatel-Lucent shares or exchangeable for existing Alcatel-Lucent shares due on January 30, 2020 (the “2020 OCEANEs” and, together with the 2019 OCEANEs, the “OCEANEs”). Nokia has agreed to acquire the OCEANEs through a privately negotiated transaction in consideration for an aggregate cash payment of EUR 418 949 438.33. The settlement of the transaction is expected to occur on or around May 16, 2016.

Following this transaction Nokia is expected to own 94.64% of the share capital and 94.57% of the voting rights of Alcatel-Lucent, corresponding to 94.17% of the Alcatel-Lucent shares on a fully diluted basis. (Original Source)

Shares of Nokia are currently trading at $5.18, down $0.10 or -1.80%. NOK has a 1-year high of $7.63 and a 1-year low of $5.11. The stock’s 50-day moving average is $5.88 and its 200-day moving average is $6.57.

On the ratings front, Nokia has been the subject of a number of recent research reports. In a report released yesterday, MKM Partners analyst Michael Genovese reiterated a Hold rating on NOK, with a price target of $5.75, which represents a potential upside of 9.5% from where the stock is currently trading. Separately, on the same day, Canaccord Genuity’s Michael Walkley reiterated a Hold rating on the stock and has a price target of $5.50.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Genovese and Michael Walkley have a total average return of 2.5% and 13.8% respectively. Genovese has a success rate of 44.5% and is ranked #1059 out of 3845 analysts, while Walkley has a success rate of 56.4% and is ranked #27.

Overall, 6 research analysts have assigned a Hold rating and 6 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $6.48 which is 23.4% above where the stock opened today.

Nokia Oyj provides network infrastructure, technology and software services. It operates through the following segments: Mobile Broadband, Global Services, and Nokia Technologies. The Mobile Broadband segment engages in the provision of flexible network solutions for mobile voice and data services through its Radio and Core business lines. The Global Services segment provides mobile operators with services to create and maintain effective networks. The Nokia Technologies segment focuses on advanced technology development and licensing. The company was founded in 1865 and is headquartered in Espoo, Finland.