NSN's Future Still up in the Air

Nokia Corp. (NYSE: NOK) and Siemens AG (NYSE: SI; Frankfurt: SIE) may have decided not to accept any of the private equity offers for a stake in their Nokia Networks joint venture, but beyond that, it seems little has been decided.

NSN announced today that the ownership of the company wouldn't be changing and that the "current shareholders are in the best position to further enhance the value of the company." In addition, it stated that it would take "further steps to improve the competitiveness of the company as a standalone entity."

Quite what this means hasn't yet been determined, with NSN's communications team saying they are unable to comment further beyond today's official announcement and referring the media to parent Nokia.

So we called the Finnish giant. A Nokia spokesman tells Light Reading that there are no current plans for any job reductions and "nothing concrete" on any plans for further cash injections into NSN. The parent companies "will look into ways to support NSN," he added.

Is an IPO on the cards perhaps? "It's too early to talk about that. The current focus is on strengthening NSN and improving its efficiencies and profitability," adds the spokesman.

One person close to proceedings says that some clarity on what happens next with NSN will come from Nokia and Siemens during the third quarter (so before the end of September).

It's possible, then, that Nokia may have something to say when it announces its second-quarter financial results on July 21, though that seems a little too soon given the lack of information currently available.

— Ray Le Maistre, International Managing Editor, Light Reading

Sign In