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Nokia responds to rumours

Nokia logo on a booth

Finnish communication technology firm Nokia has responded to market rumours, after its shares fell earlier on Friday.

Nokia had disclosed in its annual report that it was looking into certain transactions in its Alcatel-Lucent business, which it bought in 2016.

Nokia's shares fell on the news, and are now still down 5.2% to $5.92.

"While Nokia does not typically comment on market rumours, given the market reaction and inquiries related to a disclosure in the risk factors section of its annual report on Form 20-F for 2018, the company issues this statement to clarify that the specified investigation is not expected to have a material impact on Nokia," Nokia said in a statement.

"We have seen no evidence that would suggest that criminal penalties would apply in this case, and we believe it is highly likely that any penalties that might apply would be limited and immaterial."

Nokia said it was scrutinising certain transactions in the former Alcatel Lucent business "out of an abundance of caution and in the spirit of transparency".

Nokia shares slide

nokia logo
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Shares in Finnish network equipment maker Nokia are down 7.8%.

This fall came as it said it was looking at the business - Alcatel-Lucent - it bought in 2016.

"To ensure complete compliance we are now scrutinising certain transactions in the former Alcatel-Lucent business and although this investigation is in a relatively early stage, out of an abundance of caution and in the spirit of transparency, Nokia has contacted the relevant regulatory authorities regarding this review," Nokia said in an emailed statement to Reuters.

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Nokia to slash thousands of jobs

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Entrance of Finnish telecommunication network company, Nokia plant in Lannion, western France
AFP/Getty Images

Nokia is launching a major restructuring program that will result in thousands of job cuts.

The Finnish firm is looking to save $1bn by the end of 2020 as it transitions from making mobile phones to telecoms equipment like cellular towers and 5G networks. Nokia sold its phone business to Microsoft in 2014.

"Our industry is one where a constant focus on costs is essential," Nokia chief executive Rajeev Suri said in a statement.

"Even if these actions are right for our business, we do not take them lightly given the expected impact on our employees".

Nokia has more than 100,000 employees globally.

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