Nokia Siemens Networks has launched syndication of a 1.5 billion EURO forward start
facility to extend the maturity of a proportion of its existing syndicated
facility when it matures in June 2012.
Recently, the telecom equipment vendor
announced that it will cut 17,000 jobs worldwide.
According to a report in Bloomberg,
job cuts at Nokia Siemens Networks, the unprofitable
telephone-equipment venture of Nokia and Siemens, will amount to a higher
number than assumed so far, Frankfurter Allgemeine Zeitung reported.
Additional jobs will be lost as Nokia
Siemens sells assets that are peripheral to the new strategy announced on
Nokia Siemens Networks CEO Rajeev Suri recently wrote a
letter to employees saying the world’s second-largest maker of mobile phone
network equipment cannot expect any more cash injections from its two parent
Parents Nokia and Siemens have provided capital for the
last time and expect this investment will provide results, according to a
report in MoneyControl.com.
NSN has struggled to make a profit since being set up in
2007. It has faced aggressive pricing from rivals and an economic downturn that
has forced telecoms companies to cut spending.
After the announcement several analysts said they thought
the venture would need to raise more money from its parents to cover the
restructuring costs on top of the 1 billion euros it has raised only in late
The company would seek to exit or to put on maintenance
mode businesses such as fixed-line VoIP, broadband access, WiMAX, narrowband,
carrier Ethernet, business support systems, and communications and
By Telecomlead.com Team