With stock tanking, Nokia applies to delist shares from the Frankfurt Stock Exchange

Nokia doesn’t seem to be able to catch a break as of late and things appear to be going to bad from worse for the Finnish mobile giant with the announcement that due to the decreased trading volumes of shares on Frankfurt Stock Exchange, the company will delist its shares.

According to its statement, Nokia’s application will be made to the Management Board of Frankfurt Stock Exchange and if approved, the final day of trading of Nokia shares on the German Stock Exchange is estimated to be before the second half of 2012.

Whilst the Frankfurt Stock Exchange doesn’t form a huge part of Nokia’s total stock, the withdrawal demonstrates the company’s back-to-basics approach, which has already seen it overhaul its supply chain and reorganise its workforce. Nokia has already delisted from the stock exchanges in London, Paris and Stockholm.

Once it has delisted, the company will trade on the NASDAQ OMX Helsinki Stock Exchange and in the U.S in the form of American Depositary Shares on the New York Stock Exchange.

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Nokia doesn’t provide a detailed reason as to why it decided to delist its shares but typically companies apply to delist if they are unable to adhere to the rules that certain stock exchanges impose on companies that wish to trade on their markets. In some cases, companies are required to have a dedicated number of shareholders, a minimum price per share or a minimum market cap. If a company is unable to meet one of these criteria, or believes it cannot achieve it in the near future, it may decide to delist.

Of course, it could be a sign of financial or managerial trouble (which is likely to affect stocks in other markets), but with Nokia having previously delisted from three previous markets, it appears the company is acting reduce further damage in regards to the value of its company.

Shares plunged last night on reports that Nokia’s new Lumia 800 smartphone wasn’t performing as well as originally forecast in its sales markets, the company moved to dampen rumours but came under fire for its lack of a detailed response.