Pensions Hold Back NSN Deal
Private equity firms have been talking to NSN since at least August, but the Journal reports they're being scared off by NSN's pension obligation, which is probably in the billions of dollars. (See Nokia Siemens Seeks Cash.)
The report also mentions the "complexity of structuring a minority stake in a joint venture."
In November, Reuters had reported the NSN deal was being held up by Nokia and Siemens disagreeing on the terms of a deal. That hurdle seems to be cleared; the Journal says private equity firms are negotiating for up to a 30 percent stake for as much as $1 billion.
The Reuters and Journal reports, combined, list five private equity firms supposedly talking to NSN: Bain Capital , The Blackstone Group , Gores Group LLC , Kohlberg Kravis Roberts & Co. (KKR) and TPG Inc.
— Craig Matsumoto, West Coast Editor, Light Reading