Boston, MA, 04/14/2014 (usastockreport) – In a bid to remove the remaining hurdles to the Nokia Corporation (ADR) (NYSE:NOK) and Microsoft Corporation (NASDAQ:MSFT) mobile unit deal, Nokia Oyj has decided on offering voluntary retirement at its Indian factory located at Chennai, Tamil Nadu. However, this is a minor battle in comparison to the almost $300 million tax dispute which is currently under review at Indian Supreme court.
Nokia would be required to transfer the plant to Microsoft Corporation (NASDAQ:MSFT) as part of the long pending 5.4 billion euro ($7.5 billion) sale of its one dominant handset division.
A court ruling has required that the company gives the tax office a $582.17 million bank guarantee before transferring the plant to Microsoft. Nokia Corporation (ADR) (NYSE:NOK) has contested this ruling too in the supreme courts of India.
Nokia on Friday announced, without alluding to the dispute, has said that the decision to offer a voluntary retirement scheme (VRS) post reviewing the inevitability and permanence of the regulatory environment in countries where it operates.
Technically the VRS is open to all employees who wish to take it.
The plant located in Chennai with about 6,600 full time employees, is one of Nokia’s largest mobile making facilities.
The Chinese do give a go ahead
The Chinese regulators have given the green signal to the $7.5 billion deal between Nokia and Microsoft for Nokia’s handset division. The deal, already approved by European and US regulators was held up at the Chinese regulator’s doors for more than 30 days. The primary reason being patent fees related concerns raised by Chinese handset manufacturers. Nokia has been creating fresh revenue stream from intellectual property rights. Thus once the deal is completed Microsoft Corporation (NASDAQ:MSFT) can get access to opportunities in a rapidly evolving mobile market, and Nokia Corporation (ADR) (NYSE:NOK), on the other hand, can concentrate on developing its network infrastructure segment including base stations, antennas and another network equipment.