Nokia Loses Two Prominent Executives

STOCKHOLM (Dow Jones)--Nokia Corp. (NOK) Friday suffered the loss of two prominent executives, with the departure of JT Bergqvist and Sari Baldauf adding to the shakeup of management at the world's largest mobile phone maker.

The resignations from the Finnish company's tight-knit management team follow on the heels of Chief Strategy Officer Matti Alahuhta's decision last month to leave to become president of elevator maker Kone Corp. (KONBS.HE).

Bergqvist, head of the global business units of Nokia's networks activities and often the public face of the division, is leaving the company for personal reasons, Nokia said. He has been a member of Nokia's executive board since 2002.

Baldauf, the head of networks and the highest-ranking woman at Nokia, is leaving to "pursue new personal challenges" outside Nokia, the company said.

Baldauf's resignation in particular will be seen as a blow for Nokia. Often ranking among the most successful businesswomen in Europe, she helped drive the infrastructure unit through the recent industrywide downturn.

Both she and Alahuhta had at different times in the past been tipped as possible successors to Chief Executive Jorma Ollila.

Baldauf "has been closely involved in the development of the whole mobile infrastructure industry during the past 20 years, practically during her whole career at Nokia," Ollila said in a statement.

"I have been aware of Sari Baldauf's plans for quite a long time, and the changes in Networks' management we are announcing (Friday) are a well-planned part of Nokia's transformation process," he said.

Nokia said 46-year-old Australian Simon Beresford-Wylie will take over from Baldauf. He has worked for the company since 1998 and currently heads Nokia's infrastructure business in Asia and is a member of the networks division's management team.

Baldauf's resignation was first discussed with senior management about three years ago, a spokeswoman for the company told Dow Jones Newswires. She said Baldauf felt that she had completed her project to turn around the networks operations and so the timing was right to leave Nokia.

Urban Ekelund, analyst at Swedish independent research firm Redeye, said the departures, coming one after another as they did, are sure to raise concerns among investors.

Another analyst in Finland, though, said Nokia Networks has been doing well and growing its business in line with the industry. He said it is probable that the departures of Alahuhta and Baldauf are unrelated, and that perhaps Bergqvist resigned after not being named to replace Baldauf.

"Still, it is significant that three key board members are leaving. It will mark a transition period for Nokia, although it's unlikely to be a tragedy for a company of this size," he said.

The news appeared to have little impact on Nokia's shares, which by 0840 GMT were trading flat at EUR12.65 in an unchanged broader market in Helsinki.

Company Web site: http://www.nokia.com

-By Robb M. Stewart, Dow Jones Newswires; +46 8 545 130 94; robb.stewart@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 3rd December 2004