Bloomberg:

Nokia named Rajeev Suri chief executive officer, picking the head of its networks division to chart the company’s future and forecasting a return to sales growth after selling the mobile-phone business to Microsoft Corp.

The stock jumped the most in six months after Espoo, Finland-based Nokia also said it plans to spend about 5 billion euros ($6.9 billion) on dividends, share buybacks and debt reduction. The appointment of Suri, 46, ends the search for a replacement for Stephen Elop, who returned to Microsoft with the sale of Nokia’s handset division for $7.5 billion.

By choosing Suri, 149-year-old Nokia is intensifying its focus on wireless-network equipment as it faces a new start without the phones that made it famous. Suri, who has run the network unit for four years, needs to challenge larger Ericsson AB (ERICB) and Huawei Technologies Co. to reverse falling equipment revenue, which accounts for about 90 percent of Nokia’s sales.