Dec. 17, 2006

Nokia Siemens's Networks deal is still planned, but the joint venture partners announced that the deal's closing has been delayed until sometime in the first quarter of 2007.

Originally, the Nokia-Siemens deal was set to close on January 1st, 2007.

Investigations surrounding corruption at Siemens has sparked the delay.

"Closing will be subject to an agreement between Nokia and Siemens on the results and consequences of a Siemens compliance review," the companies said in a prepared statement.

The compliance review is slated for the first quarter of next year.

The 50-50 joint venture, which was first announced in April, will concentrate on fixed and mobile network infrastructure and services. As part of the agreement, Nokia intends to combine its network business group with Siemens' carrier-related operations.

The companies are combining forces to make Nokia Siemens the third-largest telecom equipment provider in the world. The recently merged Alcatel-Lucent is the top player, followed by Ericsson.

Nokia Siemens Networks has already been given nods from U.S. and EU antitrust regulators.

The companies also have filled key management roles. Mika Vehviainen, who currently serves as senior vice president and general manager of Nokia's Core Networks division, was named as COO.

Karl-Christoph Caselitz, Siemens' president of mobile networks, will step in as chief market operations officer, while Peter Schonhofer will join the JV as CFO.

Schonhofer comes to the new entity from Siemens Austria, where he served as a member of the executive board.

The companies also have detailed the team leaders for each of the joint venture's various business units.

Source: Wireless Week