Wednesday, February 16, 2011

Ephemeral sling minority shareholders at Nokia

The agreement between Microsoft and Nokia on the use of Windows Mobile smartphones from the Finnish brand never ceases to stir. After the anger of the unions, who believe that the agreement threatens to 6,000 jobs - 3 000 to 4 000 in the direction of the group - they are minority shareholders of the Finnish group, world leader in telephony, which attempted to organize to delete the agreement and dismiss the group's CEO, Stephen Elop, its functions.

A group of nine shareholders, which does not specify how many shares they own, had appealed to other holders of securities for Nokia they support a plan that drastic action "to put in place a strategy that seeks high growth and a significant margin, through a policy of innovation and quest for better product.

" The appeal, called "Plan B for Nokia", proposed to replace the CEO, Stephen Elop, by "a CEO who has experience in the telephony sector", a virtual abandonment of its partnership with Microsoft, relegated to test and a refocusing on research and development, with major investments in the operating system Meego brand, and a policy of aggressive recruitment in order to renew the research centers of the company.

But the appeal has fizzled. If the authors claim to have received thirty-six hours on the support of hundreds of shareholders, "with between 10 and 400 000 Nokia shares (a total of 100 million shares), they explain that their contacts with major shareholders unsuccessful, they do not want to support a strategic realignment of this magnitude.

"They told us that if the strategy of Nokia does not suit them, the easiest way for them was to sell their shares and invest elsewhere - which is exactly what they started to do," the group wrote. The Nokia shares plunged after the announcement of partnership with Microsoft, losing 25% of its value in one week.

As investors sell their shares en masse in the phone giant, the hypothesis of a takeover by Microsoft, discussed the end of 2010, could become clearer over the coming months.

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