Ina Fried

Recent Posts by Ina Fried

Nokia Taps Option for Nearly $2 Billion in Bond Financing From Microsoft

One of the many terms of the Microsoft-Nokia megadeal is an option for Nokia to get 1.5 billion euros ($1.975 billion) from Microsoft ahead of the transaction’s closing.

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Nokia said on Friday that it indeed wants the full amount, which it will pay for by issuing a series of bonds to Microsoft.

If Microsoft’s deal to acquire Nokia’s device unit is completed, the bonds will be redeemed from the purchase price. Otherwise, they have different maturity dates, and are also convertible into Nokia shares.

In a statement, Nokia said it will use the money to pay down debt from its buyout of Siemens in their network equipment joint venture, as well as for the catch-all “general corporate purposes.”

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik