Monday, June 19, 2006

Nokia, Siemens to merge mobile networks

The 50-50 joint venture, to be called Nokia Siemens Networks, will comprise Nokia's network business group and Siemens' carrier-related operations, creating estimated synergies of $1.9 billion, Nokia said.

Shares of Siemens surged nearly 7.8 percent in Frankfurt trading to $85.64 after the announcement, while Nokia was up nearly 3 percent to $20.38 in Helsinki.

"We believe the partnership with Siemens is the most effective way to build the scale and broad product portfolio necessary to compete globally and create value for shareholders," Nokia Chief Executive Olli-Pekka Kallasvuo said.

"The communications industry is converging, and a strong and independent Nokia Siemens Networks will be ideally positioned to help customers lower costs and grow revenue while managing the challenges of converging technology."

Your Ad Here