Nokia Siemens in talks to buy Motorola's telecom equipment arm
Press Trust of India / New York Jul 14, 2010, 15:25 IST
Nokia Siemens Networks is in talks to buy the telecom equipment arm of US-based Motorola Inc in a deal estimated to be worth around $1.3 billion, a media report said.
Quoting sources familiar with the matter, The Wall Street Journal said in a report that Nokia Siemens Networks was in discussions to acquire cellphone maker Motorola's telecom-equipment arm, and a deal "would hasten the dismantling of the US technology company."
"The two companies are discussing terms, and a deal could be worth $1.1 billion to $1.3 billion," the WSJ said, citing a person close to the matter.
The report stated that though a deal could be reached in the next few weeks, there was no certainty about it.
Though this unit of Motorola mainly makes older-generation equipment for telecom networks, it would let Nokia Siemens -- a leading supplier of telecom equipment -- offer its newer products to customers who upgrade, the report stated.
Nokia Siemens Networks, a joint venture between Finnish firm Nokia and Siemens AG of Germany, has been trying to enter the US market through acquisitions. Though the JV bid for two units from Nortel Networks Corp last year, it eventually failed to acquire them.
Motorola networks unit has an installed base of equipment with large carriers, including Verizon Wireless and Sprint Nextel Corp. It had reported $366 million in profit last year.
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