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

To: elmatador who wrote (3948)	6/18/2006 10:20:05 PM
From: Eric L	Read Replies (3) \| Respond to of 9255

Nokia Networks Absorbing Siemens Networks >> Nokia, Siemens in $31.5 Billion Phone Equipment Deal Marketwatch San Francisco Jue 18, 2006 tinyurl.com Nokia Corp. and Siemens AG are expected to announce Monday that they are combining their phone equipment units in a deal valued at $31.5 billion, according to a media report Sunday. The combined entity, which would not be traded publicly, would be based in Nokia's home country of Finland, The Wall Street Journal reported in its online edition, citing unnamed people familiar with the matter. Siemens (SI) would hold a minority of board seats, although the company, yet to be named, would be owned on a 50-50 basis, The Journal said. Nokia, the world's dominant manufacturer of cell-phone hand sets, previously has refrained from the mergers and consolidations sweeping the industry. By combining their equipment businesses, Siemens and Nokia hope to mount a more robust defense against the Asian threat to their global market share, The Journal said. A combination of the companies' telecom-equipment units would be roughly equal in size to rival Telefon AB L.M. Ericsson of Sweden and a combined Lucent-Alcatel. The new entity would be particularly powerful in supplying the mobile-telephone industry, The Journal said. Both companies would contribute their network equipment operations to the new entity, The Journal said. The companies expect savings from reducing duplicated research and development could reach $1.58 billion annually, The Journal reported. The new company will be run by Nokia executive Simon Beresford-Wylie in the role of chief executive, The Journal said. While the move does not mark an official exit from the telecom business by Siemens, the company is expected to play a smaller role than Nokia in the new company, The Journal said. <snip rest> >> - Eric -