NSN to Restructure After Failed Sellout Attempt
Nokia Siemens Network is likely to restructure itís business after the firm failed to sell controlling stakes to a consortium of buyout firms, reported Wall Street Journal.
Without getting the confirmation from NSN officials, WSJ cites sources to reveal that a sellout deal didnít close, which was due three weeks ago, but negotiations may go on for some more time.
WSJ says that this partial sellout was aimed to inject funds into an unprofitable business, however, now both the partners, i.e. Nokia and Siemens are exploring a “self-help” approach for the business, where each partner might put more cash into the venture.
Commenting on failed deal, WSJ said it was unclear about the hindrance in deal, but it seems that Nokia Siemens is uneasy to sell stakes to buyout firms, which are known for investing in distressed assets.
Alternative solutions could include Siemens taking control of the company or the sale of a minority stake to KKR or TPG.