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Message 2965 of 2991
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Current strategy.
Itechnopeasant
(M/Hamilton. ON)
Jul 7 1998
3:05PM EDT
I think some of the recent merger activity has everyone reevaluating the strategy. More
takeovers are on the boards and everyone is scared of being left out. This release from
Siemens about the UK market seems to indicate that Siemens knows what it wants,
and what it wants includes a strong ongoing relationship with Newbridge. I suspect if
someone made a hostile bid for Newbridge, Siemens would be the white knight.
I think the Affiliate Network (Cambrian, Spacebridge etc on the Newbridge
Webpage) probably gives us the information we need when thinking about future
technical direction.
>>>>>
Munich, June 24, 1998
Siemens restructures its telecommunications activities in the UK:
GPT stake sold to GEC - Siemens acquires GEC's stake in Siemens
GEC Communication Systems - Siemens receives œ610 million as a
balancing payment
Two new companies formed: Siemens Telecom Networks and
Siemens Newbridge Networks.
Siemens AG, Berlin and Munich, and The General Electric Company plc.(GEC),
London, have reached agreement on the future of their joint ventures in the British
telecommunications market. Siemens will sell to GEC its 40% stake in GPT, its joint
venture with GEC in public communications systems.
At the same time, Siemens will acquire the remaining 50% (less one share) of the
equity of Siemens GEC Communication Systems Ltd., its joint venture with GEC in
private communications systems. In addition, GEC will make a balancing payment of
œ610 million (more than DM1.8 billion) to Siemens. In a step to focus its
telecommunications activities for public network operators in
the UK, Siemens has formed two new companies, Siemens Telecom
Networks and Siemens Newbridge Networks.
Roland Koch, member of the Managing Board of Siemens AG and President of the
Public Communication Networks Group, commented: "With this move, Siemens is
sharpening the focus of its telecommunications activities in order to achieve clear
market positions. Our long-term interest lies in high-growth telecom fields such as
mobile telephony and broadband data transmission
technology - and this on a worldwide basis. Our global competitiveness depends on
these growth sectors and on our position as a global player capable of providing
comprehensive systems. This is why we are intensifying our involvement in these
high-growth telecom fields, and pushing development in promising global telecom fields
to reflect market trends, like the increasing convergence of voice and data transmission
technology and the booming mobile telephony sector."
As previously announced, Siemens is currently restructuring its information and
communications business segments. Slated to take effect on October 1, 1998, the
reorganization aims to better exploit synergy potentials by clearly focusing the expertise
of both segments.
SGCS, henceforth a wholly-owned Siemens subsidiary, offers a broad spectrum of
solutions and services and has succeeded in expanding its position in the private
telecommunications sector to become the second-largest provider of private
communications systems in the UK. As a complete solutions provider, SGSC offers
turnkey telecommunications systems, corporate networks, and innovative applications
such as call centers, mobility solutions for corporate campuses, and video conferencing
systems. SGCS will continue to sell Hicom, Siemens' globally successful product
family, and to support GPT's iSDX/Realitis product families, which already have
extensive installed bases.
"The new constellation will allow Siemens to further strengthen the company's
presence in the very attractive British telecommunications market", said Koch. "The
formation of the new companies Siemens Telecom Networks and Siemens Newbridge
Networks will enable Siemens to expand its business with public network operators in
the UK."
Food for thought
Regards
Glenn |
