Nokia Oyj pared a 12 percent surge in U.S. trading after Chinese telecommunications company Huawei Technologies Co. refuted a report that it was interested in acquiring the struggling Finnish handset maker.
Nokia’s American depositary receipts rose 4.6 percent to $3.86 at the close in New York yesterday. Earlier, they had jumped as high as $4.12 after the Financial Times reported that Huawei is “considering these sorts of acquisitions,” according to Richard Yu, head of the company’s consumer business. He said a combination with Nokia would have “some synergies,” according to the FT.
Huawei has “no plans” to acquire Nokia, the Chinese company said in an e-mailed statement yesterday.
“In the whole history of our company, we have done very few, very small acquisitions,” Scott Sykes, a spokesman for Huawei, said in a phone interview today.
One of the first smartphone makers, Espoo, Finland-based Nokia has lost market share as customer preferences have shifted to touchscreen handsets like Apple Inc.’s iPhone and Samsung Electronics Co.’s Galaxy.
Huawei, a maker of telecommunications networking gear, has been pushing into the handset market. The company accounted for 4.3 percent of the world’s smartphone shipments in the first quarter, up from 3.4 percent a year earlier, according to data compiled by Bloomberg.
Nokia’s share slipped to 2.8 percent last year from 7.8 percent a year earlier. Samsung led the market in the first quarter with 32 percent, followed by Apple with 17 percent.
Chris Hollis, a Nokia spokesman, declined to comment.