Retired WiiHacks Staff
Are Nokia going down the pan?
Nokia, of late, has been struggling hard to stay in the market, and it may only be a matter of time before the Finnish company finally gives in to speculations. Rumours of acquisition have been rife since the past few days; most of them being about Microsoft's willingness to offer a bid to the company, though Nokia has denied any such reports.
More recently, it was made public that Samsung has prepared a bid for Nokia Siemens Network (NSN), which according to the Korean conglomerate, is a 'standard market procedure'. Given Nokia's long existence in the Asian, African and European markets; some would think it's high time they refreshed their line up a bit. It finally hit Nokia when they announced a tie-up with Microsoft to produce Windows Phone 7 handsets with their hardware.
Then came the conspiracy theories suggesting that Nokia's newly appointed CEO, Stephen Elop, (who, incidentally, worked with Microsoft as the President of their Business Division) could be influencing the whole chain of events. Conspiracy theorists are still of the opinion that the whole episode was staged, with Microsoft has already having made an offer of US$20 billion to Nokia.
In the latest development, it was confirmed that Nokia and its partner Siemens were looking for companies willing to initiate a joint venture deal, thus making it official. Nokia and its partner Siemens said that they are currently looking into the bids, though information regarding the bidding companies is scarce at the moment. A spokesperson from Nokia, Doug Dawson said in a statement, "There has been unsolicited interest in NSN and we continue to be in constructive talks with multiple parties".
Nokia announced the partnership with German company Siemens in the year 2006, but it officially came into existence only in 2007. The two companies together, provide telecommunication facilities and data networking services. Running in about 150 countries worldwide, the NSN has been a burden on both the companies for much of the time since its inception. This deal between the two ends in 2013, and it would help both Siemens and Nokia to focus more on their respective businesses.
However, things don't look good for NSN as of now. Two private equity groups: Kohlberg Kravis Roberts & Co and TPG Capital have now backed out of the bid. These two firms had placed a bid for the acquisition of a major chunk of NSN's shares. Apparently, the bid was called off by the two firms over disagreement about the price of the overall acquisition, and regarding the problem with level of authoritative control after the acquisition. This came after prolonged discussion with the reps of the firms with Nokia and Siemens.
Source ---> Nokia Siemens Considering Bids For Joint Venture