BUZZ-Nokia shares jump on deal to buy Infinera in North America
Ciena Corporation CIEN | 0.00 | |
Infinera Corporation INFN | 0.00 | |
Dow Jones Industrial Average DJI | 0.00 | |
S&P 500 index SPX | 0.00 | |
NASDAQ IXIC | 0.00 |
** Shares in Nokia NOKIA.HE rise 4% after the Finnish network equipment maker signed a deal to acquire California-based optical semiconductor maker Infinera INFN.O on Thursday
** Nokia expects the $2.3 billion deal to help expand its presence in the optical network business in North America and to increase its profits by 10% until 2027
** The combined company would have a 20% market share relative to Ciena's CIEN.N 20% and Huawei's HWT.UL 31%, J.P.Morgan analysts say
** "Historical precedent for Optical industry M&A points to heightened integration risk of competing Optical portfolios," JPM says, adding this would "limit the appetite" for Ciena to make a competing bid
** Nokia's shares are among top gainers on Europe's benchmark STOXX 600 index .STOXX
(Reporting by Boleslaw Lasocki)
((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))