Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Eric L who wrote (6064)	4/3/2009 10:49:56 PM
From: elmatador	Read Replies (2) \| Respond to of 9255

Telecoms consolidation is on going as Nortel is being carved up. Motorola soon will go and Nokia-Siemens may not survive much longer. No longer than 5 years max. Consolidation. Deconstruction of the OECD industrial base. Message 25546270

To: Eric L who wrote (6064)	4/3/2009 10:54:05 PM
From: elmatador	Respond to of 9255

Motorola and Nortel targeted by private equity groups seeking assets merger By Mariana Valle, Lawrie Holmes and Sarah Cohen Published: March 16 2009 13:06 \| Last updated: March 16 2009 13:06 A number of private equity firms are targeting certain assets of Motorola and Nortel, two sources told mergermarket. According to one source with knowledge of the situation, Advent International has been targeting the handset business unit of the US-listed telecoms company Motorola and has been looking for other investors to join its consortium. Advent declined to comment. The source said that Advent was looking to acquire the handset business as well as other businesses from Nortel and merge them together into a new group. The deal is still in its early stages, the source added. Motorola and Nortel declined to comment. Private equity firm CVC is also believed to have been approached to join the consortium, a source close to CVC said. He added that the group had been approached to take part in a bid for a combined business that includes Motorola and Nortel operations. However, CVC declined to take part, the source added. CVC declined to comment. Nortel and Motorola have toyed with the idea of merging their wireless base stations for years. In 2008, as Motorola attempted to divest its handset unit, reports surfaced that it was also in negotiation with Nortel about an infrastructure merger to create what would be a USD 10bn business. The companies attempted similar negotiations a few years after the burst of the telecom bubble. An analyst following Motorola argued that the handset unit is currently showing a negative valuation as the business is currently loss-making and the unit’s turnaround is taking longer than expected. He added that the infrastructure unit is performing better but is also “chugging along.” A second analyst agreed with the claims, saying that the handset business has a ”massive negative valuation.” If Motorola was made up of its infrastructure business only, he added, the business could be worth twice its market cap. Motorola’s market cap stands at USD 7.95bn.