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© Nokia Siemens Networks Electronics Production | July 14, 2011

Sale of Nokia Siemens Networks abandoned

“We believe that the current shareholders are in the best position to further enhance the value of the company,” said Olli-Pekka Kallasvuo, chairman of Nokia Siemens Networks.

Nokia Siemens Networks (NSN) - a 50/50 joint venture of Finland's Nokia and German Siemens - is the world's No. 2 maker of wireless networking equipment. The company has been struggling for profitability since its formation in 2007. (Top1 is Ericsson) During the past 12 months, talks with private equity groups have been conducted to sell NSN (valued by analysts at around EUR 7-8 billion). "Analysts said a private equity offer for NSN -- which Nokia and Siemens turned down -- likely valued the venture well below that", writes Reuters in a report. Nokia Siemens Networks said that it had "made good progress in its turnaround plan, with first quarter 2011 results marking a third successive quarter of year-on-year reported net sales growth, as well as a fifth quarter of non-IFRS operating profits since it announced its change in strategy in November 2009". Both companies confirmed their commitment to the joint venture, but Siemens is believed to exit sooner or later.
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May 14 2019 8:21 pm V13.3.8-2