It is reported that the internal discussion of Nokia's board of directors regarding the acquisition of Aran is only part of the many options for the company's future strategy. According to sources, although Nokia's board of directors has discussed the "all options" for the acquisition of Aran, it has not yet formally contacted Aran on this issue.
This summer, Nokia spent 1.7 billion euros to buy the entire shareholding of Siemens ’joint venture Nokia Siemens (hereinafter referred to as“ Noxi â€). After the mobile phone business is delivered to Microsoft, Nokia will focus on wireless network equipment business and map software business. So far, Nokia and Alang spokesmen have not commented on the report.
The source said that Nokia's board of directors held a meeting last week to discuss the company's future strategy and other matters. It is reported that Nokia's board of directors has not yet made any decision on future development plans. Another source revealed that Nuoxi's management currently regards the acquisition of Aran as an uncertain choice, because Aran has "a huge risk of restructuring."
Aran is still a troubled telecommunications equipment manufacturer. Since the merger of Alcatel and Lucent in 2006, Aron has been burning money every year. In the second quarter of this year, Alan ’s net loss expanded to 885 million euros due to increased restructuring expenses. Aran is still under restructuring. The company's goal is to cut 1 billion euros of expenditure, so that the company can focus on profitable products on a small scale.
For Nokia, the combination with Aran will be a risky bet, because despite the difficulties, Aran is still the largest mobile operator in the United States Verizon Wireless, the second largest mobile operator AT & T, and the operator of China Mobile Signed a profitable contract.
A source disclosed at the beginning of this year that if Aran and Nokia ’s telecommunications equipment business merge, the transaction will be supported by the French government. Because this transaction will create a larger telecommunications equipment manufacturer and better compete with companies like Ericsson in Sweden and Huawei in China.
The investment bank Morgan Stanley analyst pointed out in a recently released investor report that the merger of Nokia Siemens Networks and Aran will make it the second largest telecommunications equipment manufacturer in the world, with a market share slightly lower than Ericsson ’s 36%, but high 32% of Huawei. In the US telecommunications equipment market, Aran and Nokia Siemens will have a 45% share, and Ericsson's share will be 45%.
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