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Nokia Pushes Back Against FT Article On Leadership Change

TECHNOLOGY

Ba1/BBB-/BBB- EUR Spreads Unchanged On News


Nokia have quickly poured cold water on the FT article (in a similar fashion to the Samsung story a couple weeks back). A change in leadership has the potential for volatility in the ST though the ongoing weakness in the name means that calls for changes in strategy/leadership may persist


  • FT sources indicated that Nokia has approached candidates about replacing Pekka Lundmark as CEO with at least one head-hunter appointed to the process.
  • Nokia's CEO search follows declining sales, with Q2 2024 revenue down 18% and operating profit dropping 32%. Shareholders have been frustrated by stagnant growth since the €15.6bn Alcatel-Lucent takeover, despite cost-cutting and restructuring.
  • A search for a new chair is also reportedly ongoing.
  • Look at market expectations around Nokia vs. Ericsson; https://marketnews.com/nokia-vs-ericsson-what-does-consensus-say.

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