Nokia Closes NSN Buyout

A prominent joint venture once shared by Nokia (NYSE: NOK  ) is now entirely in possession of the Finnish telecom. The company announced that it has completed the acquisition of Siemens' (NASDAQOTH: SIEGY  ) stake in Nokia Siemens Networks. Accordingly, the unit has been renamed Nokia Solutions and Networks, allowing the company to maintain the NSN initials.

Nokia is keeping the division's leaders in place. Rajeev Suri continues to be its CEO, while Jesper Ovesen remains executive chairman. The composition of the board, however, has been "adjusted to the new ownership structure as the Siemens-appointed directors have resigned."

Last month, both Nokia and Siemens revealed that they reached an agreement for the former company to buy the latter's 50% stake in the joint venture. The total sale price was $2.23 billion.

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  • Report this Comment On August 07, 2013, at 6:46 PM, RIM4Life wrote:

    ".... The deal gives the Finnish phonemaker full access to Nokia Siemens’s cash. Nokia Siemens is considering selling a 500 million-euro bond to help fund a dividend payment to Nokia worth about 900 million euros, the people said."

    Nokia is using NSN to issue bond sales for a 900MM 'dividend' payment to Nokia. This means that more than HALF of the entire NSN deal will be paid for by NSN itself!

    NOK pays 800MM out of pocket... for which they already have bank financing to draw from. The NSN deal may not cost NOK that much cash after all.

    5,000 job cuts will help NSN to keep making those 11% margins. And NOK will be able to sit back and reap all the CASH from NSN for years.

    BRILLIANT move by Elop.

  • Report this Comment On August 08, 2013, at 1:36 AM, ctyank99 wrote:

    The good news keeps coming for Nokia!

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