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Technology Stocks : Nokia (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: 49thMIMOMander who wrote (15348)	10/2/2001 5:18:04 AM
From: elmatador	Respond to of 34857

About our discussion on MOT Message 16419541 Motorola, Siemens plan mobile JV - report By James Mackenzie, Reuters 01 October 2001 German technology group Siemens AG on Monday declined to comment on a report that it was in talks with Motorola about a joint venture in wireless infrastructure or mobile handsets. The Wall Street Journal, citing people familiar with the situation, said in its online edition on Monday that a deal could create ventures with a total value of between $20 billion and $25 billion. Though the talks between Motorola and Siemens of Germany have been going on since the start of the summer, they were still at a delicate stage and could fall apart, the newspaper said, adding no announcement was imminent. Siemens remained tight-lipped on the report. "We do not comment on market speculation," a Siemens official told Reuters. Industry sources say that Siemens is looking closely at its mobile operations and examining a range of options including tie-ups and alliances with a number of the world's biggest manufacturers. The German group already cooperates with Japan's Toshiba Corp in developing new generation mobile handsets and industry observers have speculated that the two companies could be interested in a wider alliance. A joint venture with Motorola, the world's second biggest handset maker, would open up the potentially vast U.S. market to Siemens but there were doubts about the prospects of a quick solution to a large number of open issues, including brand positioning and differing technical standards. "There are more questions than answers at the moment," WestLB Panmure analyst Thomas Langer said. The world's leading handset makers have struggled to come up with a response to a sharp slow down in growth of demand for mobile handsets amid growing scepticism about the near-term prospects of new generation mobile Internet services. Ericsson , which vies with Siemens for the number three spot in the global handset market, is combining its loss-making mobile phone operations with Japanese electronics group Sony Corp and analysts say all the leading manufacturers are under pressure to respond to growing competition and weaker demand. Rudi Lamprecht, the head of Siemens' mobile phone division, indicated earlier this year that the German group was looking for opportunities as the sector consolidates. Siemens mobile phone operations made an underlying loss of 511 million euros ($467.1 million) in the third quarter to the end of June, largely due to losses in the mobile handset business and the costs of writing off the value of unsold inventory. Motorola, the world's number two mobile phone maker behind Nokia , said last month that third quarter sales would be flat with the second quarter, the latest in a string of sales warnings. It has also announced plans to shed 32,000 jobs in recent months, cutting its workforce by a fifth from the level at the end of last year.