Nokia Siemens May Unload Business-Support Unit as Demand Wanes, Competition Swirls
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Nokia (NYSE: NOK) shares are just off of intraday higher following reports earlier that it and Siemens AG (NYSE: SI) may be closer to selling off Nokia Siemens' Business Support Systems unit.
The news comes as the duo look for more ways to eliminate risk in the unprofitable joint venture, cutting fat where fat needs to be cut. Bloomberg reported that the unit might garner as much as $377 million.
Potential buyers of the unit include private equity firms, Ericsson AB (Nasdaq: ERIC), or Amdocs (NYSE: DOX).
Nokia and Siemens were in discussions last year on potentially selling the unit, but offers that came in below expectations scrapped those plans.
To get an idea of how grisly the telecommunications equipment segment has become -- which is where Nokia Siemens operates -- one only has to take a look at French frim Alcatel Lucent (NYSE: ALU). Shares are down 72 percent over the last year and 83 percent since highs above $6.50 were realized in May 2011.
Whether the news today will turn up a positive result isn't clear; companies haven't commented the chatter and the market seems rather stale with lagging demand and increased competition from all angles.
Shares of Nokia are 4.3 percent lower while Siemens is off about 0.2 percent.
The news comes as the duo look for more ways to eliminate risk in the unprofitable joint venture, cutting fat where fat needs to be cut. Bloomberg reported that the unit might garner as much as $377 million.
Potential buyers of the unit include private equity firms, Ericsson AB (Nasdaq: ERIC), or Amdocs (NYSE: DOX).
Nokia and Siemens were in discussions last year on potentially selling the unit, but offers that came in below expectations scrapped those plans.
To get an idea of how grisly the telecommunications equipment segment has become -- which is where Nokia Siemens operates -- one only has to take a look at French frim Alcatel Lucent (NYSE: ALU). Shares are down 72 percent over the last year and 83 percent since highs above $6.50 were realized in May 2011.
Whether the news today will turn up a positive result isn't clear; companies haven't commented the chatter and the market seems rather stale with lagging demand and increased competition from all angles.
Shares of Nokia are 4.3 percent lower while Siemens is off about 0.2 percent.
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