Nokia-Siemens Networks merger delayed

Nokia and Siemens have delayed the merger of their telecom activities to the first quarter of 2007, instead of 1 January 2007. It seems that on going investigation inside the Siemens Telecom group has led both companies to review their agreements in order to have Siemens in order prior to the closing of the deal. A Siemens compliance review will be held in 1Q07. While the deal has been approved by EU and US authorities, the deal is effectively on hold, ans some Siemens managers are afraid that Nokia might pull out of the joint venture entirely depending on how far the scandal reaches. While Siemens minimizes the impact and said it is the fact of individuals, several current and former managers have been arrested and, up to now, some $550m were found in questionable transactions over seven years. Nokia will participate in Siemens' compliance review, highlighting its interest to tightly follow the evolution of the file. Nokia would negotiate a clause forcing Siemens to pay any further costs related to the bribery allegations. To be continued.....