Lenovo interested in buying Nokia?

HELSINKI, FINLAND: Shares in Nokia surged 11 per cent on Wednesday in heavy volumes, with traders and analysts citing talk that Chinese PC maker Lenovo may be interested in the struggling Finnish cellphone maker.

Nokia declined to comment. Lenovo was not immediately available for comment.

Nokia shares have dropped more than 70 per cent since it unveiled a strategy shift in February 2011 and the speculations of possible takeover bids have made rounds through the year.

Volumes in Nokia were at nearly double the 90-day daily average by 0925 GMT, against just 25 per cent traded on the pan-European FTSEurorfirst index .FTEU3, which was up 0.2 per cent.

"It's the Lenovo rumor," said one analyst, who wished to remain anonymous.

The latest update on the matter is that Lenovo has quashed market speculation that it was interested in buying Nokia.

"This must be a joke," Gianfranco Lanci, who runs Lenovo's operations in Europe, Middle East and Africa told Reuters. "There's nothing ongoing."