Siemens (SI) Slumps; Material Impact Looms on Nuclear Joint Venture Exit
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Siemens (NYSE: SI) shares are trading lower this morning, following a release from the company that states that they will be selling their 34% stake in Areva NP S.A.S. to Areva S.A. Areva NP is a nuclear power joint venture between the two companies, which was terminated in January 2009.
Though Siemens notes that the sale will have a positive contribution to Q211 earnings, they note that the sale of their €1.62 billion stake may draw a price that is 40% less than fair value based on the potential outcome of arbitration proceedings. Siemens noted that the decision, which is expected to occur over the next few months, could have a material impact on earnings.
The stake is to be transferred by January 2012 pursuant to a put option, according to Siemens.
Siemens shares are trading 4.8% lower pre-market today.
Though Siemens notes that the sale will have a positive contribution to Q211 earnings, they note that the sale of their €1.62 billion stake may draw a price that is 40% less than fair value based on the potential outcome of arbitration proceedings. Siemens noted that the decision, which is expected to occur over the next few months, could have a material impact on earnings.
The stake is to be transferred by January 2012 pursuant to a put option, according to Siemens.
Siemens shares are trading 4.8% lower pre-market today.
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