NSN Stake Sale Proving Tricky

4:10 AM -- Nokia Corp. (NYSE: NOK) and Siemens AG (NYSE: SI; Frankfurt: SIE), the parents of Nokia Networks , are struggling to agree on terms for the sale of a stake in their telecom infrastructure joint venture, according to a report from Reuters.

Discussions have been taking place for some months with potential private equity investors, but it seems there are a number of details yet to be agreed upon between the joint owners before a transaction can be realized. (See Report: NSN In Stake Talks.)

NSN, which has been building an impressive collection of LTE engagements, recently reported further operating losses for the third quarter of this year, though it's creeping closer to a financial break-even point. (See DT Does LTE With NSN , NSN: Parts-Shortage Problems Easing, Telecom Italia, NSN Trial LTE in Turin, German Operators Get Busy With LTE , and NSN Lands $7B LTE Deal in US .)

— Ray Le Maistre, International Managing Editor, Light Reading

digits 12/5/2012 | 4:18:25 PM
re: NSN Stake Sale Proving Tricky

sounds like you have a downer on NSN.... do you think it will find any takers?


Not sure I get your statements posted (in brackets)... I believe Nokia's statement about being willing and open to talk was issued in response to repeated questions about whether it was looking for an investor, rather than a statement issued as a 'for sale' sign. I'd rather see that sort of response that get a repeated 'no comment'.

spc_markl 12/5/2012 | 4:18:25 PM
re: NSN Stake Sale Proving Tricky

If you are referring to [], it was just overkill in terms of writing in that those letters were not capitalized in the article.

As with Alcatel-Lucent, I think the highest probability is with the company breaking up.

Other than "no comment," NSN could have said that "we are in discussions with a number of potential investors."


spc_markl 12/5/2012 | 4:18:25 PM
re: NSN Stake Sale Proving Tricky

“[I]t means it is not particularly exciting (translation – there is not much money to be made here)” is probably much closer to the truth than” the two differ on the possible price tag.”

“[W]e remain open and willing to talk to people about NSN to bring in capital and other industrial assets” (beginning signs of desperation when a company needs to keep asking instead of just quietly negotiating)

“Siemens has been looking for an exit since Peter Loescher took over as group CEO in 2007” (Then why should anyone make an investment in the JV?)

Mark Lutkowitz, Telecom Pragmatics

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