If we needed some more confirmation of how urgent the financial situation was over at Nokia, we got a glimpse of it today. The company announced that it would be drawing down the €1.5 billion ($2 billion) in convertible bonds offered to it by Microsoft earlier this week at the same time as the announcement of its $7.2 billion acquisition of Nokia’s mobile phone business. Nokia says it will be using the proceeds towards its acquisition of outstanding NSN shares, “and for general corporate purposes.” They will be issued on September 23.
The €1.5 billion, as detailed in the original announcement of the deal, was being made available in three tranches of €500 million. Nokia is going all in on these, with the three tranches respectively maturing in five, six and seven years.
There has been a lot of speculation about what finally pushed Nokia into making the deal to…
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