Nokia moved quickly yesterday to stamp out press reports that it had prepared an offer to buy router and optical transport systems vendor Juniper Networks (NYSE:JNPR).
"While Nokia does not typically comment on market rumors, given the specificity of press reports related to a potential acquisition of Juniper Networks, the company issued the following statement: 'Nokia is not currently in talks with, nor is it preparing an offer for, Juniper Networks related to an acquisition of that company,'" said Nokia via an unattributed statement.
The main source of the rumors was a CNBC report (since removed from the media company's website and replaced with a story focused on Nokia's denial). The original report quoted sources that said Nokia was preparing an offer with a value of approximately $16 billion. That would equate to about $42 per share, more than 40% above Juniper's trading price at yesterday's close. Juniper's share price spiked by 24.7% in after-hours trading until Nokia's denial; the stock was trading down 5.43% shortly before noon November 30.
Financial analysts had expressed skepticism about such a deal in the hours after the report. Such a purchase would rival for scale Nokia's acquisition of Alcatel-Lucent (see "Nokia pulls trigger on Alcatel-Lucent buy").
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Stephen Hardy | Editorial Director and Associate Publisher
Stephen Hardy has covered fiber optics for more than 15 years, and communications and technology for more than 30 years. He is responsible for establishing and executing Lightwave's editorial strategy across its digital magazine, website, newsletters, research and other information products. He has won multiple awards for his writing.
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