3rd Jun 11
Nokia boss denies Microsoft takeover
by Sally Davies
Otherwise engaged: Nokia deny takeover rumours
Otherwise engaged: Nokia deny takeover rumours
Nokia has described speculation that Microsoft is in discussions to purchase it as “completely baseless”, with the company’s chief executive Stephen Elop informing a US audience that there are no negotiations on the subject between the two companies.
Elop said during the D9 conference, held near Los Angeles, that the rumours are baseless because there are no discussions, adding that it was as clear as that.
Suggestions of an impending takeover triggered a short-lived recovery in the stock market on Wednesday for the phone retailer after it has dropped substantially following a profit warning a day earlier in which the company said that it was possible its mobile division would not make a profit over this quarter, this first time this has been the case in more than 10 years.
However, Elop said that selling standard feature mobiles, which is around half of the company’ mobile business, is not in line with Microsoft’s business. In February the two companies signed a strategic alliance which will see the US software company pay the Finnish phone maker billions of dollars so it can use the Windows Phone software in its high-end smartphones starting later this year.
Elop stated that no takeover discussion had taken place and that he believed investors planned to wait for the next crop of phones, which are set to replace the Symbian operating system. He said that his and the team’s principle focus is to look after the short term but ensure the execution is flawless.
He also denied claims that Microsoft had planted him at Nokia in September last year as a “Trojan horse” in order to prepare Nokia for a takeover. He described the Trojan horse theory as overplayed, comparing it to the John F Kennedy grassy knoll theory. Elop agreed that this week’s news was not positive, but stated that it highlights the fact that a new strategy is needed. He added that at the moment, however, it certainly feels painful.
He reiterated that the company was replacing the Symbian with Windows Phone for competitive reasons, explaining that in some markets Symbian was at a deficit compared to the Android and iPhone. He said that the company didn’t feel they could catch up with the Symbian as it was slightly “crufty” – how programmers describe code which has outdated elements that interfere with its maintenance and operation.
The introduction of the iPhone has resulted in the momentum swinging to North America with both Apple and Canada’s RIM, producer of the Blackberry, gaining significant control.
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