Nokia and Siemens say they have completed an inquiry into possible private equity interest in their Nokia Siemens Networks joint venture and decided against following that path. “We believe that the current shareholders are in the best position to further enhance the value of the company,” said Olli-Pekka Kallasvuo, chairman of Nokia Siemens Networks.
Nokia and Siemens had discussed selling equity in Nokia Siemens Networks with several private equity firms. For example, in May Reuters reported that a pair of consortia, The Gores Group with Platinum Equity, and TPG with KKR, were kicking the tires on the optical and wireless networking joint venture.
However, it appears that Nokia and Siemens failed to consummate a deal with these and other potential investors, and have decided to continue funding the firm themselves – at least for the time being.
While pointing to a recent upturn in performance -- first quarter 2011 results marked the third consecutive quarter of year-on-year reported net sales growth, as well as a fifth quarter of non-IFRS operating – Nokia Siemens Networks also will continue its cost-saving efforts. The company will “drive further efficiency while strengthening the company’s innovation capabilities in mobile broadband, services, and customer experience management,” according to a press statement, which did not provide details on how these plans will be enacted.
“Nokia and Siemens have reaffirmed their commitment and continue to be strong supporters of Nokia Siemens Networks,” reiterated Rajeev Suri, CEO of Nokia Siemens Networks. “With us, they share the common goal of ensuring that Nokia Siemens Networks will be a sustainable and powerful leader in the industry, benefitting from its strength in innovation.”