At least E1bn reportedly needs to be injected into Finnish-German vendor Nokia Siemens Networks (NSN) by its owners, after the group failed to find an outside investor.
This additional funding is required to push forward a critical restructuring of NSN,…
At least E1bn reportedly needs to be injected into Finnish-German vendor Nokia Siemens Networks (NSN) by its owners, after the group failed to find an outside investor.
This additional funding is required to push forward a critical restructuring of NSN, a 50:50 JV between Finland’s Nokia and Germany’s Siemens, reports German business magazine Capital citing a company insider.
NSN also intends to issue a high-yield bond of up to E2bn this autumn to refinance credit lines that expire in June 2012, adds the report.
Siemens, Nokia and NSN declined to comment on the speculation.
The JV called off its near-year long search to sell a majority stake in the business in mid-July, with chairman Olli-Pekka Kallasvuo stating: “We believe that the current shareholders are in the best position to further enhance the value of the company.”
PE firms including Blackstone, TPG, KKR, Gores Group and Platinum had been rumoured to be interested, but were reportedly unhappy with the price and level of control they were being offered.
The sellers were reportedly looking to receive around US$2bn in return for a 51% stake.
French vendor Alcatel- Lucent and South Korea’s Samsung had also been in the frame.
Potential bidders were also concerned about NSN’s loss-making business, which has come under increasing pressure from Asian competitors over the past years.
