Recent media reports just revealed that the famous venture between Nokia and Siemens, Nokia Siemens Networks (NSN) is expected to be terminated in the near future.
It’s been expected that either Siemens will exit from the joint venture or will reduce its stake in the coming months. In recent years Siemens has been looking to shed its noncore assets and holds only a non controlling stake in the joint venture.
In the short term both firms intend to run the joint venture as usual. Nokia Corporation (ADR) (NYSE:NOK) faces a tricky situation. After an ongoing restructuring the venture has increasingly shown signs of growth over the past year. The joint venture has emerged as a leader in the current 4G LTE transition around the globe. The venture no expects to reclaim its number second position behind the Ericsson by the end of 2013.
Last week both firms were reported to be indulged in talks to develop a new plan for their telecom infrastructure joint venture.
Stock of Nokia Corporation (ADR) (NYSE:NOK) in last session held volume of 31.24 million shares as compare to its average volume of 44.83 million shares. NOK stock after opening at $3.23 hit high price of $3.28 and then closed at $3.26.