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Nokia-Siemens JV mulls stake sale
2 August 2010: Nokia Siemens Networks is holding discussions with private equity firms Blackstone and Bain Capital, among others, for a potential cash infusion of at least $1billion (approx Rs 4,650 crore) in exchange for an up to one-third stake in the telecom gear maker.
According to sources, Silver Lake Partners, TPG, Blackstone, Bain Capital and KKR are among the firms in contact with Nokia Siemens about a potential deal that could see private equity ownership of up to one—third of the company.
Any deal will be fraught with complexity, because Nokia Siemens is a joint venture between Finland’s Nokia Corp and Germany’s Siemens AG, with each parent owning a 50 per cent stake.
The six—year partnership ends in 2013. If a private equity firm were to take a minority stake, it would have to share control of the company with two corporate owners, whereas buyout firms usually like to exert full control.
Source: Hindu Business Line