re: Europe Markets Snips - NOK & Motorola/Siemens
>> Europe's Blue Chips Extend Losses
"... Siemens is losing €31 per handset sold and Motorola €19."
Oil, tech stocks fall; Wall St seen weaker
Ivar M Simensen
FTMarketWatch
9:11 AM ET Oct. 1, 2001
Europe's main markets extended losses on Monday afternoon as oil and technology stocks led decliners on the first day of the final quarter of the year.
<snip>
Technology equipment makers Nokia (NOK) and Infineon led decliners, both sliding 6 percent. UBS Warburg cut its price target for Infineon (IFX) to €10 from €25, keeping its "hold" rating. Britain's Marconi (UK:MONI)fell more than 20 percent to a new all-time low of 14.25 pence.
<snip>
German telecoms equipment maker Siemens is in talks to merge parts or the whole of its mobile phone division with Motorola (MOT), the Wall Street Journal reported on Monday. A link-up could be worth up to $25 billion, according to the report. Shares were unchanged in afternoon trade. <<
>> Motorola, Siemens Mull Venture: Two May Combine Network Gear, Cellphone Divisions
from WSJ
Andrew Bulkeley
FTMarketWatch
8:41 AM ET Oct. 1, 2001
Motorola, the world's second-biggest mobile phone maker, and Germany's Siemens are talking about linking their cellular network unit, their cellphone division or both, the Wall Street Journal repoted on Monday.
Such a deal would create a business worth between $20 and $25 billion, the paper reported, citing unnamed people familiar with the talks. The negotiations began early this summer and are still at an early stage and could fail.
"It would theorhetically be good for cost-cutting," said ABN analyst Gabriel Hors in a note. "As a reminder, Siemens is losing €31 per handset sold and Motorola €19."
The move would be just the latest consolidation in an industry alreadly wobbly after competition hammered margins just before markets disappeared. Ericsson (ERICY) has joined forces with Sony (SNE) to build phones while Dutch Philips (PHG) has all but quit the business. Siemens, the third-biggest cellphone maker, has cut employees at its German plants.
Siemens shares were unchanged in post-lunch trade after falling as much as 3.2 percent to €40.55. The shares are off 40 percent in the past six months as slowing economies slammed orders. Motorola closed up less than 1 percent Friday at $15.60.
If the joint ventures are created, each company would control one, the paper said. Motorola (MOT: news, chart, profile) and Siemens companies declined to comment.
Andrew Bulkeley is a correspondent in Berlin for FTMarketWatch. <<
- Eric - |
