Microsoft buys Nokia: what is the effect on NOK?

Just when we thought that the undisputed leader of the mid 90’s and early 2000’s is dying, Nokia showed that it can reinvent itself. Microsoft announced that it will buy the Phone division of Nokia, which will represent a new page of history for the Swedish producer. Nokia will probably renounce to release new cell phones, and it will focus on the new technologies such as the 4G networks. Nokia purchased the communication division of Eriksson a few weeks ago, so it seems like they have some big ambitions. As it was expected, immediately after the official announcement, the stock market went over the roof, and NOK went up 30% in a single day. However, the unusual movements begun with a few hours before the announcement, which means that somebody in the NASDAQ market knew about it. Microsoft will buy Nokia Phones in a 7.2 billion dollars swap, but this does not guarantee the success of Nokia. The “appetite” of Microsoft for bad deals is proverbial, so the evolution of NOK fully depends on the strategy adopted by Microsoft for the new member of the family. For the next days, NOK is expected to be traded heavily. NOK went from 3.9$/share to less