Nokia Siemens Has New Iran Strategy: Leave (NOK) (SI)
Tweet
Share
E-mailGet Alerts NOK Hot Sheet
Up)Join SI Premium – FREE
Nokia Siemens, the joint venture of Nokia (NYSE: NOK) and Siemens (NYSE: SI), is said to be adopting a new policy on Iran starting on January 1, 2012: get the heck out of there.
According to a brief report from the WSJ Tuesday, Nokia Siemens will deny new business and implement plans to reduce existing commitments gradually.
Upon closer examination, it appears the move does not stem from any bad blood between Nokia and Iran. Tougher global sanctions are "making it almost impossible for Nokia Siemens Networks to do business with Iranian customers," a letter from Nokia to Iranian staff obtained by the WSJ said. Nokia Siemens plans to support its customers and honor contracts for as long as it can, within limits of existing and new sanctions.
But the joint venture has been scaling-back it's exposure since at least June 2010, when it aimed to only extend contracts of existing customers.
Nokia Siemens came under some fire in 2009 when it disclosed selling a monitoring center to government-owned Telecommunications Co. of Iran. The center provided the business with capability to intercept and record voice calls on its mobile networks.
Amid the news, Nokia shares are about 2 percent higher, while shares of Siemens are 0.2 percent lower on the session.
According to a brief report from the WSJ Tuesday, Nokia Siemens will deny new business and implement plans to reduce existing commitments gradually.
Upon closer examination, it appears the move does not stem from any bad blood between Nokia and Iran. Tougher global sanctions are "making it almost impossible for Nokia Siemens Networks to do business with Iranian customers," a letter from Nokia to Iranian staff obtained by the WSJ said. Nokia Siemens plans to support its customers and honor contracts for as long as it can, within limits of existing and new sanctions.
But the joint venture has been scaling-back it's exposure since at least June 2010, when it aimed to only extend contracts of existing customers.
Nokia Siemens came under some fire in 2009 when it disclosed selling a monitoring center to government-owned Telecommunications Co. of Iran. The center provided the business with capability to intercept and record voice calls on its mobile networks.
Amid the news, Nokia shares are about 2 percent higher, while shares of Siemens are 0.2 percent lower on the session.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Nokia OYJ (NOKIA:FH) (NOK) PT Raised to EUR2.90 at Citi
- Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
- Coinbase (COIN) Announces Resignation of Kathryn Haun from Board
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
