TELECOM Digest OnLine - Sorted: Nokia, Siemens in Telecom Merger

Nokia, Siemens in Telecom Merger

Associated Press News Wire (
Sun, 18 Jun 2006 22:09:12 -0500

European telecom makers Nokia Corp. and Siemens AG have agreed to
combine their telephone equipment units in a deal valued at roughly 25
billion euros ($31.6 billion), according to a newspaper report.

Nokia would control a majority of board seats of the new company,
which would be based in Finland and not traded separately, The Wall
Street Journal reported Sunday on its Web site, citing people familiar
with the deal.

Ownership of the new company would be split evenly between Nokia and
Siemens, and would be headed by a Nokia executive, Simon
Beresford-Wylie, according to the report.

The deal was expected to be announced on Monday.

The combination would allow both companies to reduce redundant
research and development spending, with savings as high as 1.25
billion euros ($1.58 billion) annually, according to the report.

Siemens, based in Munich, Germany, is not expected to leave the
telecommunications business but will play a smaller role than Nokia in
the new operation, the report said.

U.S.-based spokeswomen for Nokia and Siemens did not immediately
return a call for comment Sunday evening.

Copyright 2006 The Associated Press.

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