A review into Siemens's compliance with an investigation into corruption has postponed the company's equipment merger with Nokia. A merger of network infrastructure at the two companies may now be put back several months as investigators determine the validity of bribery charges levied at Siemens, and the effects of the arrest of the former head of Siemens's equipment group come to light. As recently as November, the two companies had stated that they expected to become Nokia Siemens Networks -- which was estimated would produce $20 billion a year in revenue -- by January 2007. The companies now expect the merger to be complete by sometime in the first financial quarter of next year, although that depends on how well, or badly, the investigation progresses. As long as the two companies keep on cranking out the phones, then we'll remain obliviously happy, but if the investigation turns up s'more dirt, we'll be sure to shovel it through the nearest web browser window.Corruption investigation postpones Nokia-Siemens merger
C. Quilty-Harper|12.20.06
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December 20, 2006 12:50 PM
In this article: BenQ, Business, Compliance Review, ComplianceReview, Corruption, Europe, Investigation, mobile, Nokia, Siemens
A review into Siemens's compliance with an investigation into corruption has postponed the company's equipment merger with Nokia. A merger of network infrastructure at the two companies may now be put back several months as investigators determine the validity of bribery charges levied at Siemens, and the effects of the arrest of the former head of Siemens's equipment group come to light. As recently as November, the two companies had stated that they expected to become Nokia Siemens Networks -- which was estimated would produce $20 billion a year in revenue -- by January 2007. The companies now expect the merger to be complete by sometime in the first financial quarter of next year, although that depends on how well, or badly, the investigation progresses. As long as the two companies keep on cranking out the phones, then we'll remain obliviously happy, but if the investigation turns up s'more dirt, we'll be sure to shovel it through the nearest web browser window.All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
