Nokia’s Growing Cash Mountain Harvard Case Solution & Analysis

Nokia's Growing Cash Mountain Case Solution

In mid-November 2002, The CEO and its team for management had to determine a course of action for his firm's growing cash pile of 8 billion euros. The business does not have any instant acquisitions on the horizon and boasts a low debt load: 450 million in long-term debt and 2.6 billion euros in customer lending exposure.

Ollila has recently ruled out a share buy back after credit agencies like Moody's threatened to downgrade the business from its present A1 credit rating. Ollila needs to think of a strategy for the cash within two weeks which will suit shareholders. In formulating his strategy, Ollila and his management must consider the surroundings and the potential future investment and lending needs of Nokia.

PUBLICATION DATE: October 29, 2004 PRODUCT #: IES107-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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