Third Point picks up stake in Nokia-Reuters

(Reuters) – Activist investor Daniel Loeb’s Third Point LLC said it took a stake in Nokia Oyj late in the third quarter ended Sept. 30.

Third Point said it “seized an opportunity to create new Nokia at a substantial discount to target value”, following the Finnish phonemaker’s decision to sell its devices and services business to Microsoft Corp.

“The company will have approximately 8 billion euros ($11 billion) cash when the transaction closes, and we expect a meaningful portion of the excess will be distributed to shareholders in coming quarters,” Third Point said in its quarterly investor letter.

Nokia shares were up 1.4 percent at $7.25 on the New York Stock Exchange on Tuesday.