Following the reports Nokia Oyj registered a 4.1 per cent gain in Helsinki trading which saw stock prices reach as high as €2.97. According to reports both the companies made a significant progress in talks that could have led to a merger of Microsoft and Nokia’s phone business but, the talks have since faltered. Nokia’s plans of selling of its mobile phone business may be a part of its turnaround efforts which could see the Finnish company dispose off its assets.

According to analysts keeping a close on the matter the deal, if it goes through, will be beneficial to both the companies as Nokia will be able to revive its profitability and Microsoft would get a sound base on which it could bolster its wireless presence.

Mikko Ervasti, an analyst at Evli Bank Oyj said, “It does makes sense.”

“All options have to be on the table, but at the moment it’s of utmost importance that operations are not distracted. This summer is Nokia’s chance to show Lumia is here to stay”, Ervasti added.