It was there, B-plan

according to New York Times,  though that was widely recognized as a possibility.
the idea of Nokia using Android wasn’t a part of Microsoft’s discussions with the company about an acquisition, even though that was widely recognized as a possibility.

Perhaps on one level, Nokia’s Android effort is not shocking. Companies often have plan Bs in the works in case they need to change course on strategy or want to help negotiate better terms with partners.  But it was the well done device, according the rumours. We have heard a lot about it.
Getting Android to run on Nokia’s hardware was not a Herculean engineering effort, according to the people familiar with the project, NYT writes.
This linux-based prototype but a working device was the reason Microsoft's urgency behind that it can be bought part of Nokia, buy it, even at very cheap price.
The current status of Nokia’s Android project `is unclear´, supposedly. Ofcourse, after Microsoft completes its acquisition of Nokia’s phone business early next year, there won’t be much future for it.
And if the tool is still good, it is, this one will be dangerous to sell.