14 DAY TRIAL // According to the latest news around the Internet, Nokia Siemens Networks would be interested in the purchase of the telecom-equipment arm of Motorola Inc. It seems that the talks have already advanced, and that the two companies are currently discussing the terms of the deal, which could worth between $1.1 billion and $1.3 billion.
According to a recent article on The Wall Street Journal, people familiar with the talks unveiled the aforementioned details regarding the deal. If all goes according to plan, chances are that an official announcement on the matter would be made within the following few weeks. However, neither Nokia Siemens Networks nor Motorola commented on the matter.
Currently, Motorola is moving towards splitting its business into two separate entities. The plan was announced a few months ago, and should be finalized sometimes in early 2011. The company's network equipment and communications divisions would form a new company, and the same applies to its handsets and set-top boxes divisions.
This would be another attempt from Nokia Siemens Networks to purchase a network infrastructure supplier in the United States market. Previously, the company tried to purchase parts of Nortel's Carrier Networks division relating to CDMA and LTE technology in North America. However, its US$650 million bid for Nortel had no chance in front of Ericsson's offer of US$1.13 billion, especially with the company stating that it would not bid more for Nortel's assets.
Through this purchase, Nokia Siemens Networks, a joint venture between Finnish handset vendor Nokia and the German firm Siemens AG, would gain access to Motorola's telecom clients. It seems that another infrastructure solutions provider, Huawei, was also interested in the purchase of Motorola's telecoms unit, but that the negotiations did not come to an end, mainly due to concerns regarding security hurdles, the aforementioned sources noted, The Wall Street Journal reports.