NSN Unlikely to Attract Suitors
Mon, 10/26/2009 - 10:57am
FRANKFURT, (Reuters) -- Financial investors are unlikely to show any enthusiasm to acquire struggling telecom gear maker NSN, which parent companies Siemens (SIEGn.DE) and Nokia (NOK1V.HE) would like to divest, a German daily reported.
"Siemens has wanted to get out for some time, Nokia now (wants out) too," Financial Times Deutschland said on Monday quoting a person familiar with the situation.
"I cannot imagine that NSN in its current state could be of any interest to a financial buyer," the paper said quoting financial sources. Siemens, Nokia and NSN declined to comment.
The venture fell to an underlying July-September operating loss of 53 million euros ($78.88 million) from a profit of 177 million a year ago as it struggled against competition from Ericsson and Huawei.
Siemens had warned at end-September it might have to write down its 50 percent stake in Nokia Siemens and promised to "tackle the problems actively".
Nokia Chief Executive Olli-Pekka Kallasvuo told analysts on a conference call last week: "It is clear that NSN has lost market share. The top priority for NSN is restoring growth to the company's top line and reversing the market share dynamic."
Nokia Siemens Networks was created in 2007, lasting until 2013, and neither firm has commented on an exit strategy. Analysts said Siemens is not keen on continuing it because it has since left the telecom sector completely.