Nokia Siemens Networks chooses a suitor: its own shareholders
A lot of marriages hit rough patches from time to time, and it's no different for companies and their shareholders. The last three months have likely been especially tumultuous for Nokia Siemens Networks as it played the field, conducting a review to assess potential private equity interest. In the end, however, NSN determined the grass was indeed greener on its own side. According to the press release (found after the break), it concluded that "the current shareholders are in the best position to further enhance the value of the company." Given that NSN's reported three successive quarters of year-on-year growth, the troubled relationship appears to be out of hot water for now -- we just hope the shareholders are willing to kiss and make up.
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Nokia and Siemens complete process of reviewing private equity interest in Nokia Siemens Networks, reaffirm commitment to company
Espoo, Finland – July 13, 2011
Nokia Siemens Networks confirmed today that a review for assessing private equity interest in the company had been completed.
"We believe that the current shareholders are in the best position to further enhance the value of the company," said Olli-Pekka Kallasvuo, chairman of Nokia Siemens Networks.
Nokia Siemens Networks has made good progress in its turnaround plan, with first quarter 2011 results marking a third successive quarter of year-on-year reported net sales growth, as well as a fifth quarter of non-IFRS operating profits since it announced its change in strategy in November 2009.
Along with ongoing efforts to generate cost savings, Nokia Siemens Networks plans to take further steps to improve the competitiveness of the company as a standalone entity. For example, Nokia Siemens Networks plans to drive further efficiency while strengthening the company's innovation capabilities in mobile broadband, services and customer experience management to drive and support customer roadmaps.
"Nokia and Siemens have reaffirmed their commitment and continue to be strong supporters of Nokia Siemens Networks," said Rajeev Suri, chief executive officer of Nokia Siemens Networks. "With us, they share the common goal of ensuring that Nokia Siemens Networks will be a sustainable and powerful leader in the industry, benefitting from its strength in innovation."
