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Nokia equipment venture deal to strain cash

Reuters/ AFR | July 3, 2013
Nokia's move to buy out Siemens AG's share of their network equipment joint venture strains a balance sheet already under pressure from a loss-making handset business, which could burn through its cash as soon as next year.

Many believe Nokia could list the network business or boost its cash position by selling network equipment manufacturing.

Fitch's Owen Fenton said on Tuesday that during the past year Nokia's handset and network businesses had outperfomed the credit agency's expectations, but noted in the mobile phone business "the visibility is still extremely limited".

He said that the acquisition of the profitable network business was positive, but added that "it does not make too much difference."

 

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