Nokia Siemens in negotiations to buy a Motorola Unit
By Hassan MohammadZaman
Mid East correspondent for www.crwenewswire.com
Motorola Inc intends to increase its market value by splitting itself into two companies. Nokia Siemens Networks is in negotiations with Motorola Inc for the acquisition of its telecom equipment division. The acquisition deal could be worth $1.1 billion to $1.3 billion which could result in dismantling of US technology giant.
Many believe that negotiations in process between the two companies could end up without any definition or possible results.
The Motorola telecom division with Nokia Siemens intends to buy deals in older generation equipment for telecommunications networks. Nokia Siemens looks forward to the possible acquisition of the Motorola unit and servicing customers with the latest wares.
Nokia Siemens is in cut throat competition with Huawei Technologies for the No. 2 ranking in wireless equipment sales globally. The low cost Chinese supplier Huawei also had eyes on the Motorola unit but the negotiation didn’t work out due to clearing security hurdles.
Nokia Siemens a joint venture of Nokia Corp of Finland and Siemens of Germany has been trying to make its entry into the US market through acquisitions for some time. The company did also place a bid in bankruptcy court auction for two units of Nortel Networks Corp which it failed to win.
Motorola Inc reported net profit of $366 million last year and after splitting into two companies intends to keep its networks equipment manufacturing to itself. It’s primary customers are police and fire departments. However according to CEO Greg Brown, the company would consider bid offers for networks business too.
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