Nokia plans to buy Juniper Networks valued $13.7 billion


Anonymous sources claim that handset giant Nokia is planning to purchase U.S.-centered network maker firm, Juniper Networks, to enhance its network business.

Rajeev Suri, boss of Nokia Solutions and Networks (NSN) went to America in 2013, to make arrangements for the deal. He also arranged a meeting with Juniper’s top officials to discuss its considerations which would ultimately boost NSN’s feeble U.S. business.

U.S. firm Juniper is currently valued at $13.7 billion. The company’s manager, Magazin, has offered Nokia to make the best out of $3.1 billion cash owned by Juniper. After the services and devices business being sold to Microsoft for a hefty deal of $ 7.4 billion, Nokia is only left with NSN as a major wing. Nokia is aimed at a plethora of new options as its strategic policy starting in March.

On the contrary, some sources claim that there are no signs of deal. NSN has already joined hands with Juniper to sell and design network devices to operators.

Microsoft will get Nokia’s ex boss Stephen Elop as soon as the takeover is done. Elop also served Juniper as chief operating officer back in 2007.

Needham & Co analyst Alex Henderson quoted as “Nokia will be deprived of some 10-20 % premium as it will be awarded to Juniper’s stocks. He claimed that such a deal can’t be done as the Finnish handset maker was short of synergies and abilities. However, none of the three entities, Juniper, Nokia and NSN, have given any approval or denial on this matter.

Apart from this, Juniper also vows to give back at least $3 billion to its shareholders in the form of dividends and share re-buy in a span of three years.

Elliott Management Corp’s boss, Paul Singer, has demanded the firm to repurchase its shares and distributes dividend among its shareholders. Elliot Management has got 6.2 percent Juniper stakes in hands.

NSN is now totally aimed at integrating the business following a significant slash in its costs. NSN now mainly targets market front-runners such as Ericsson and Chinese behemoth Huawei.

Furthermore, numerous other leaks suggest a merger between Nokia and the French heavyweight Alcatel-Lucent.