Report: Nokia, Siemens Agree to Telecom Merger
This article is from the archive of The New York Sun before the launch of its new website in 2022. The Sun has neither altered nor updated such articles but will seek to correct any errors, mis-categorizations or other problems introduced during transfer.
European telecom makers Nokia Corporation and Siemens AG have agreed to combine their telephone equipment units in a deal valued at roughly $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 yesterday 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 today.
The combination would allow both companies to reduce redundant research and development spending, with savings as high as $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.
American-based spokeswomen for Nokia and Siemens did not immediately return a call for comment yesterday evening.
