Nokia Extends Gains, Analyst Calls Maps Unit 'Solid'

Nokia Corporation (ADR) (NYSE: NOK) extended its gains Monday on news that it's exploring the sale of its HERE maps business to focus on growth at its wireless network unit and boosting its debt rating.

Nokia shares have gained nearly 5 percent since the news was first reported Friday by Bloomberg, and changed hands recently at $8.17, up $0.11 or 1.4 percent.

JP Morgan's Rod Hall on Monday called HERE a "solid business" that includes overlay features developed by Nokia since the product was acquired in 2008 from Navteq for $8.1 billion.

Nokia values the business currently at $2.1 billion, according to Bloomberg, which first reported the sale by citing unnamed sources.

Nokia could use proceeds from HERE to acquire Alcatel Lucent SA (NYSE: ALU)'s wireless business, Kepler Cheuvreux's Sebastien Sztabowicz told Bloomberg Friday.

Nokia, which completed the sale of its handset business to Microsoft Corporation (NASDAQ: MSFT) for $7.5 billion about a year ago, has discussed the sale of HERE with Uber Technologies, as well as with private-equity firms according to Bloomberg.

A group of German carmakers has also shown interest, and bids for the unit are expected as soon as this month, Bloomberg said.

The unit provides provides navigation data to Amazon.com, Inc., Yahoo! Inc. and to several car-navigation systems.

In addition to its maps unit, Nokia also operates a wireless network as well as a business which administers the company's patent portfolio.