Microsoft To Get $51 Million If Nokia Shareholders Reject Deal
New York: Finnish firm Nokia, which is selling its devices and services business to Microsoft, will pay the software giant 37.9 million euros (about USD 51.2 million) if the handset maker's shareholders oppose the deal.
In addition, Nokia will pay Microsoft another 75.8 million euros if its shareholders reject the transaction and the company sells at least 20 per cent of the devices and services (D&S) business to another buyer within a year of terminating the deal, according to a regulatory filing.
On September 3, Microsoft said it will acquire Nokia's handset business for 5.44 billion euros in an effort to strengthen its position in the smartphone market. Nokia's extraordinary general meeting for consideration of the sale is scheduled for November 19.
In a filing to the US Securities and Exchange Commission (SEC), Nokia said: "If the sale of the D&S business is not confirmed and approved by our shareholders...we will not sell the D&S business to Microsoft International at this time and we will continue to conduct our business in the ordinary course and evaluate all available go-forward strategic alternatives.