Who wants to buy this $19.4 billion company for $17.4 billion?
According to TMT, Nokia recently hired investment bank Citigroup to design a takeover defense. Bloomberg suggested KKR, Apollo Management, or Blackstone could be behind the attempt.
The rumored takeover could value Nokia at approximately $17.4 billion, according to TMT.
That, however, is kind of a strange number for investors to be getting excited about. By close of trading Thursday, after all, Nokia had reached a market capitalization of $19.4 billion — $2 billion above the reported takeout price. But even before Nokia began its rumor-fueled run-up, the stock was valued in excess of $18 billion — which makes a $17.4 billion buyout bid seem rather cheap.
For its part, Nokia is keeping mum on the whole situation. Queried by Reuters for a comment, Nokia replied enigmatically, “Nokia does not comment on market rumors.” Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.