Owners could exit Nokia Siemens Networks via IPO

Failing a new partner or source of cash for their joint venture, Nokia Corp. (NOK) and Siemens AG (SI are considering an initial public offering (IPO) as one way to exit from their 50-50 stakes in Nokia Siemens Networks.
A search for a new partner in the private equity sector has come up dry thus far, it was reported earlier this week. That could explain why Siemens CFO Joe Kaeser told a group of journalists: “If everything continues to develop well, an IPO of NSN is possible in the medium term.” For good measure, he added that there are no immediate plans for an IPO.
The joint venture has sagged on both companies from its start in 2007, sparked by a poor economic climate, tightened credit situation and aggressive competition from Ericsson and Chinese vendors Huawei Technologies Co. Ltd. and ZTE Corp. Nokia and Siemens have both written down the value of their holdings in the firm over the years and Siemens has reportedly been looking for an exit since that first year of operations. Nokia has shifted positions as well more recently.
Despite its financial setbacks and declining market position, NSN is fresh off a pair of impressive wins in North America, including its $1.2 billion purchase of Motorola Inc.’s network business and a $7 billion deal to build Harbinger Capital Partners’ LTE network over an eight-year span.