Nokia and Siemens complete review on private equity participation in NSN

Nokia and Siemens have announced the completion of the process to review private equity interest in Nokia Siemens Networks (NSN), and have reaffirmed their commitment to joint venture company.

“We believe that the current shareholders are in the best position to further enhance the value of the company,” said Olli-Pekka Kallasvuo, chairman of NSN.

NSN has made good progress in its turnaround plan, with first quarter 2011 results marking a third successive quarter of year-on-year reported net sales growth, as well as a fifth quarter of non-IFRS operating profits since it announced its change in strategy in November 2009.

Along with ongoing efforts to generate cost savings, NSN plans to take further steps to improve the competitiveness of the company as a standalone entity. For example, the vendor plans to drive further efficiency while strengthening the company’s innovation capabilities in mobile broadband, services and customer experience management to drive and support customer roadmaps.

“Nokia and Siemens have reaffirmed their commitment and continue to be strong supporters of Nokia Siemens Networks,” said Rajeev Suri, chief executive officer of Nokia Siemens Networks. “With us, they share the common goal of ensuring that Nokia Siemens Networks will be a sustainable and powerful leader in the industry, benefiting from its strength in innovation.”

In June, two private equity groups were reported to have dropped out of the bidding to buy a stake in NSN after disagreements about the price and degree of control the investors would receive over the vendor. The departure of KKR and TPG from the bidding process left just Gores Group and Platinum Equity as a possible investor.