Nokia Siemens Wants to Drop GSM from $1.2B Motorola Solutions (MSI) Deal (NOK)(SI)
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Nokia Siemens Networks, a joint venture between Nokia Oyj (NYSE: NOK) and Siemens AG (NYSE: SI), is looking to renegotiate its $1.2 billion purchase of wireless network assets from Motorola Solutions, Inc. (NYSE: MSI), according to several reports today.
The negotiation would exclude exclude the Global System for Mobile communications, or GSM, unit from the acquisition in order to meet antitrust regulations in China. Nokia Siemens is looking to adjust the price accordingly.
With the deal not expected to close in Q111, this would be the second delay to the deal within three months. The deal already has approval in the U.S. and European Union.
Chinese antitrust review comes following a lawsuit brought about by Chinese telecom provider, Huawei, which sued Motorola and Nokia Siemens on January 24, 2011, saying that Motorola did not provide assurance that they would not disclose Huawei technology and products to Nokia Siemens.
Nokia shares are trading 7.2% lower this morning, and Siemens is down 5.2%. Motorola Solutions is off 5% this morning as well.
The negotiation would exclude exclude the Global System for Mobile communications, or GSM, unit from the acquisition in order to meet antitrust regulations in China. Nokia Siemens is looking to adjust the price accordingly.
With the deal not expected to close in Q111, this would be the second delay to the deal within three months. The deal already has approval in the U.S. and European Union.
Chinese antitrust review comes following a lawsuit brought about by Chinese telecom provider, Huawei, which sued Motorola and Nokia Siemens on January 24, 2011, saying that Motorola did not provide assurance that they would not disclose Huawei technology and products to Nokia Siemens.
Nokia shares are trading 7.2% lower this morning, and Siemens is down 5.2%. Motorola Solutions is off 5% this morning as well.
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