Common Connection a Possible Influence in Nokia’s Bid for Navteq

A certain noteworthy relationship may have been a factor in Nokia Corp’s recent decision to acquire Navteq Corp for upwards of $8.1 billion dollars. The Finnish mobile phone supplier is about to enter into a deal with the navigation-software giant in what is said to be one of the largest corporate acquisitions to date (see article from The Wall Street Journal). An IntellectSpace Knowledge Map reveals common connection that likely played a role in this major agreement.

Matti Alahuhta (Director at BT Group PLC) spent 20 years, until recently, serving as Nokia’s Executive Vice President and Chief Strategy Officer. Also serving as a BT Director is Andrew Green, a Director at Navteq. The two are undoubtedly well acquainted through their board affiliation, and given Alahuhta’s particular executive role at Nokia, he not only would be a wealth of insider information for Navteq, but also it is likely that he retains contact with a number individuals on Nokia’s executive team.

This key connection may offer some insight as what underlying elements held some influence in the deal-making process.

Click here or copy this link into your Internet Explorer browser for an interactive version of this IntellectSpace Knowledge Map: http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=7b66dc8b-5c3d-4342-a8ea-24c4e1447ade

Comments

[Steve]

I love this, a takeover with zero premium for the shareholders of the acquired company. Navteq stock is actually down today, while the rest of the market is up.

I can't wait to find out what Alahuhta and other Navteq management are making from this deal. We as Navteq shareholders don't get anything, how was this deal a benefit to us? What happened to fiduciary responsibility?

[CharlieK]

I thought management sold Companies in order to give the owners a big hit.

[Cynic]

@CharlieK: You thought wrong