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Nokia, Sanyo Call Off CDMA Handset Merger

6/22/2006 11:59:00 AM Eastern

Espoo, Finland — Nokia and Sanyo called off the planned merger of their CDMA cellular handset businesses, the companies announced.

The merger “will not proceed and discussions have ended,” they said in a statement.

“Following the initial announcement on Feb. 14, based on joint negotiations and extensive analysis, Nokia and Sanyo concluded that it is more beneficial to pursue other options individually for their CDMA handset business,” the statement said. “Nokia and Sanyo will announce their future plans for their respective CDMA businesses in due course.”

In the United States, Sanyo sells handsets through Sprint PCS, and Nokia enjoys a small share of the CDMA handset business.

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