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On The Road To Recovery

20 February 2014 by HCM

Since September 2013 and the announcement of their surprise deal with Microsoft Corporation to which they agreed to sell their mobile-phone division, the risk premium of NOKIA (Nokia Oyj) has been steady. Even though it underperformed slightly the iTraxx CrossOver, it has been well behaved. Today, the company was said to be considering merging its Nokia Solutions and Networks unit with Juniper. The tie-up could be an alternative to a deal with Alcatel-Lucent and would strengthen Nokia’s US business. As further reports eventually surfaced saying the deal was not imminent, NOKIA’s 5 year CDS closed at 190bps, off its tightest level of the day. But still, the market took it as a sign of a step further on the road to recovery.