Nokia hopes to raise $980 million ahead of new phones launch

BUSINESS

Nokia hopes to raise $980 million ahead of new phones launch

The Associated Press Published Tuesday, October 23, 2012 6:44AM EDT

Nokia president and CEO Stephen Elop introduces the Lumia 900 in Las Vegas on Jan. 9, 2012.

Nokia president and CEO Stephen Elop introduces the Lumia 900 smartphone during a CES news conference on, Jan. 9, 2012, in Las Vegas. (AP Photo/Julie Jacobson)

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HELSINKI -- Nokia Corp. is planning to raise (EURO)750 million ($980 million) via an issue of bonds as part of an effort to build up its reserves ahead of next month's launch of phones running Microsoft's new Windows 8 software.

The launch is a hugely important event for the struggling cellphone maker, which has seen its stock plunge a further 5 per cent to (EURO)2.04 by midday Tuesday in Helsinki.

Last week, Nokia posted a third-quarter net loss of (EURO)969 million as sales dwindled 20 per cent to (EURO)7.2 billion. Its net cash assets fell to (EURO)3.5 billion, from (EURO)5 billion a year earlier, as it continued to struggle against the dominance of Samsung, Apple's iPhone and other phone makers using Google's Android software.