Jul 31st, 8:25am
Nokia Siemans Networks is in exploratory talks with buyout firms about a possible $1 billion cash infusion, sources told the Wall Street Journal.
The newspaper said Nokia would part with a minority stake in the company in exchange for the infusion, which would help Nokia Siemans prepare to go public in a few years and also digest the $1.2 billion acquisition of Motorola's telecom equipment unit.
No formal proposals have been put on the table yet. However, sources told the Journal Nokia Siemans has been talking to venture capital high rollers such as KKR, Silver Lake Partners and Blackstone.
The Journal also said any deal would likely be rather complex due to the partnership between Finland's Nokia and Germany's Siemans AG. Both own 50 percent of the company under an agreement that ends in 2013.
A buy-in would require an equity firm to share control with Nokia and Siemans, which the Journal said runs contrary to the usual arrangement in which the equity partner calls the shots.
