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TECHNOLOGY: Nokia (NOKIA Ba1/BBB-/BBB-): Infinera Acquisition

TECHNOLOGY
  • Overnight Nokia announced the acquisition of Infinera in a stock and cash deal. Equity responded positively to the deal, bonds are little changed this morning.
  • We estimate an increase of €1.54bn net debt from the transaction. 
  • Nokia had €5.14bn net cash at 1Q24. Leverage at FY24 was expected to be around -1.3x, we estimate -0.8x following this acquisition which would be the highest since 2019.

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