Shares in Nokia surged 11 percent on Wednesday in heavy volumes, with traders and analysts citing talk that Chinese PC maker Lenovo may be interested in the struggling Finnish cellphone maker.
Nokia declined to comment. Lenovo was not immediately available for comment.
Nokia shares have dropped more than 70 percent since it unveiled a strategy shift in February 2011 and the speculations of possible takeover bids have made rounds through the year.
Volumes in Nokia were at nearly double the 90-day daily average by 0925 GMT, against just 25 percent traded on the pan-European FTSEurorfirst index, which was up 0.2 percent.
"It's the Lenovo rumour," said one analyst, who wished to remain anonymous.
Last week it was reported that Nokia had agreed to close its Salo plant in Finland after talks with union representatives. It had repeated it aims to cut 3,700 jobs in its home country.
Nokia unveiled the plan on June 14 as part of its global cost-cut programme, including 10,000 job cuts and the closure of the Salo plant - the last major cellphone manufacturing site in western Europe, the cradle of the global industry.
It said production had already stopped at the site and 780 people will lose their jobs during this year.
Once the world's dominant mobile phone provider, Nokia was wrongfooted by the rise of smartphones and is struggling to keep up with Apple, Samsung and Google.