BYD Leads Gains by Nokia’s Asian Suppliers After Microsoft OfferBloomberg News
BYD Electronic International Co. and Compal Communications Inc. led gains of Nokia Oyj’s Asian suppliers after Microsoft Corp. offered to pay 5.44 billion euros ($7.2 billion) for the Finnish company’s handset business.
BYD, which supplies keypads and casings to Nokia, surged 7.5 percent in Hong Kong to HK$3.71 as of 1:55 p.m. local time, headed for the biggest one-day gain since June 26. Compal Communications, which provides Nokia with design and assembly services, closed 6.9 percent higher in Taipei, its biggest gain since July 11. The MSCI Asia Pacific Index rose 1.4 percent.
Microsoft will pay 3.79 billion euros for Nokia’s devices unit and 1.65 billion euros for patents, the companies said in a statement today. Nokia is coping with cash-flow challenges as its phones lose market share to handsets from Apple Inc. and manufacturers using Google Inc.’s Android operating system. The Espoo, Finland-based company has lost more than 5 billion euros in nine quarters.
Nokia had the largest share of the handset market until it was overtaken by Samsung Electronics Co. in 2012, according to data compiled by Bloomberg. Samsung Electronics fell as much as 1.9 percent while LG Electronics dropped as much as 0.6 percent.
Other Asian suppliers to Nokia that rose include FIH Mobile Ltd., which climbed as much as 6.8 percent. Compeq Manufacturing Co. gained as much as 4.4 percent and Catcher Technology Co. increased as much as 4.9 percent.
“Today marks a moment of reinvention,” Microsoft Chief Executive Officer Steve Ballmer and Nokia Chief Executive Officer Stephen Elop said in joint blog post. “With the commitment and resources of Microsoft to take Nokia’s devices and services forward, we can now realize the full potential of the Windows ecosystem, providing the most compelling experiences for people at home, at work and everywhere in between.”
The devices and services business generated about 50 percent of Nokia’s net sales during 2012, worth an estimated 15 billion euros, the companies said.
— With assistance by Sarah Chen