Renewed private equity interest in European vendor Nokia Siemens Networks has reportedly prompted its owners to once again consider selling a stake in the JV.
Finland’s Nokia and Germany’s Siemens are not actively shopping NSN to potential buyers, but…
Renewed private equity interest in European vendor Nokia Siemens Networks has reportedly prompted its owners to once again consider selling a stake in the JV.
Finland’s Nokia and Germany’s Siemens are not actively shopping NSN to potential buyers, but are considering a sale of 51% of the group for around US$2bn, reported the Wall Street Journal citing sources.
Reports last summer suggested NSN, which is due to be disbanded in 2013, was in talks with buyout firms including Gores Group, KKR, TPG and Blackstone Group for a minority stake of up to 30%.
French vendor Alcatel-Lucent and South Korea’s Samsung could also be interested in the group, the Wall Street Journal adds.
NSN declined to comment on the speculation, but a spokesman said: “Our parent companies have stated their commitment to Nokia Siemens Networks, whilst exploring the possibility of private equity taking a stake in the company.”
On 11 November, NSN CFO Joe Kaeser said the JV was looking for an investor with industry expertise to strengthen its assets beyond its 2013 break-up.
And on 30 August, NSN CEO Rajeev Suri released a statement acknowledging the JV had received approaches from a “handful” of private equity firms interested in acquiring a stake.
Morgan Stanley is advising on the sale.
The Wall Street Journal also claimed one of the biggest challenges facing a buyer was its outstanding pension obligation, which it reported could total billions of dollars.
However, this was sharply dismissed by the NSN spokesman, who told TelecomFinance: “Our pension obligations are fully funded and speculation counter to this is nonsense.”
