Monday, December 3, 2012

Nokia Corporation (ADR) (NYSE:NOK) Siemens to sell optic fiber unit

Nokia Corporation (ADR)(NYSE:NOK) Siemens Networks plans to sell its optical fiber unit to Marlin Equity Partners for an undisclosed sum, the company said in a statement on Monday.

The company which makes mobile telecoms equipment will transfer the units with its 1900 employees located mostly in Germany and Portugal to Marlin Equity Partners, it said.

NSN is a joint venture between Nokia and Siemens and has already sold a number of product lines since it last year announced plans to divest non-core assets and cut 17,000 jobs, nearly a quarter of its total workforce.

Analysts expect more divestments from the company in the near future as the company is focussing on its core business of making equipment for the telecoms sector.

The move may hint the company is preparing itself for further consolidation in the sector by cutting overlaps with other players, Nordea Markets analyst Sami Sarkamies told Reuters.

There is tough competition in the telecom equipment market and most of the players are going through tough times because of this. French company Alcatel-Lucent is also on a cost-cutting drive.

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