Ericsson looking at Nokia Siemens division purchase: report

Summary:Nokia Siemens is far from being in great shape. Ericsson, free from the Sony shackles, could be the top candidate to make a bid for the joint venture.

Ericsson, the world's biggest supplier of mobile network infrastructure, could be a prime candidate to buy out the business support systems division of its rival Nokia Siemens Networks, Reuters reported via Dow Jones wires today.

Nokia Siemens, a joint 50 percent each stake venture between Finnish Nokia Corp. and Germany's Siemens AG, is not exactly in the best shape. Set for a massive "global restructuring plan," it is cutting vast chunks of its business to conserve cash.

The firm said in November it will cut just shy of a quarter of its workforce -- around 17,000 jobs -- in a bid to save €1 billion ($1.4bn) by the end of 2013.

But Ericsson, which was recently freed from its own joint venture shackles from Sony, is likely not the only bidder. U.S. telecoms maker Amdocs is reportedly eyeing the business support unit, which provides e-commerce solutions for mobile networks and telecoms, according to a Dow Jones source familiar with the matter.

A deal is not expected to be right around the corner, however.

Ericsson and Nokia Siemens both declined to comment to Reuters.

Topics: Nokia, Tech Industry

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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