Microsoft talked with Nokia about buying devices unit: Report

SEATTLE: Microsoft Corp recently talked with Nokia about buying the Finnish phone maker's devices unit, but the discussions faltered and are not likely to be revived, the Wall Street Journal reported Wednesday in its online edition.

The Journal reported that "advanced discussions" on a deal happened as recently as this month, according to unnamed sources it said were familiar with the matter. Microsoft rejected a deal because of price and Nokia's loss of market share to rising Asian competitors, the report said.

Representatives of both companies declined comment.

"It would be logical for Microsoft to buy Nokia's phone business as the situation remains it is the sole maker of Windows phones. If there is only one, why to have separate companies for software and devices?", says Mikael Rautanen from Inderes equity research.

Shares in Nokia rise 3.6 percent in a declining European stock market on the report.

Microsoft has been striving to gain ground in a global smartphone market dominated by handsets powered by Google-backed Android and Apple iOS operating systems.

Nokia has seen its glory fade under pressure of competition from Apple and Asian mobile phone makers.
Nokia's smartphones exclusively use Microsoft Windows Phone software, under a deal the two companies struck two years ago.