Siemens' (SI), Nokia's (NOK) Shot at Selling Joint Venture Grim; Restructuring on Horizon
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Siemens AG (NYSE: SI) and Nokia (NYSE: NOK) may be looking to restructure its joint venture, Nokia Siemens Networks, after talks to sell the company to private equity have failed.
Sources suggest discussions with a consortium led by Gores Group LLC and Platinum Equity LLC are unlikely to go anywhere.
Rumor has it, however, Nokia is saying the business has "multiple options."
A group led by Kohlberg Kravis Roberts & Co. and TPG Capital may make a bid to gain a small stake in the joint venture. Some bankers have valued the company at $3 billion, according to the WSJ.
Should a restructuring occur, Nokia and Siemens should be shoveling more cash into the money pit. In 2010, Nokia Siemens Networks reported an operating loss of €686 million (about $975 million) on revs of €12.7 billion. The venture has only recorded two profitable quarters since 2007.
Siemens and Nokia each own 50 percent of the venture, though Nokia has four of seven Board seats.
Sources suggest discussions with a consortium led by Gores Group LLC and Platinum Equity LLC are unlikely to go anywhere.
Rumor has it, however, Nokia is saying the business has "multiple options."
A group led by Kohlberg Kravis Roberts & Co. and TPG Capital may make a bid to gain a small stake in the joint venture. Some bankers have valued the company at $3 billion, according to the WSJ.
Should a restructuring occur, Nokia and Siemens should be shoveling more cash into the money pit. In 2010, Nokia Siemens Networks reported an operating loss of €686 million (about $975 million) on revs of €12.7 billion. The venture has only recorded two profitable quarters since 2007.
Siemens and Nokia each own 50 percent of the venture, though Nokia has four of seven Board seats.
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