According to a Bloomberg report, Nokia (OMXH: NOK1V, NYSE: NOK) is set to announce an acquisition of Siemens' (FWB: SIE) stake in their 50-50% telecommunications equipment joint venture Nokia Siemens Networks (NSN) as early as this morning. The companies have long been seeking ways to resolve the ownership, with Siemens wanting to be more focused on its other escapades. An aggressive cost cutting program has finally turned NSN profitable although quarter-on-quarter and cyclical swings are likely to continue. According to sources, Nokia would pay Siemens under 2 billion Euros for the stake and assume all its responsibilities.
This potential deal could be a catalyst for further moves involving NSN with a possible new owner or a spin-off among potential options. Speculation about Nokia's future direction and potential deals involving some of its divisions seem to be an almost daily occurrence in the last few weeks as analysts continue to view the sum of parts to be greater than the combined entity valuation. As an only move, Nokia would have to take on some more debt to finance the deal, further lessening room for error.
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