According to the New York Times Nokia is designing an e-reader. In the article OPK doesn't really comment on anything so can't be really sure if this is anything else than rumors.

Here's the link:
http://www.nytimes.com/2010/04/12/te...l?pagewanted=1

Personally I think a MeeGo device with a large screen would make sense. Especially if Nokia want's to build a whole family of MeeGo devices.