Nokia Siemens Divests Optical Networks Unit, AMD Moves Up: Tech Business Update
Nokia Siemens Networks (NYSE:NOK)(NYSE:SI) will divest its optical networks division to Marlin Equity Partners , as part of a strategy of cost reduction, so as to concentrate upon mobile broadband. The former announced in an e-mail on Monday that as many as 1,900 employees, primarily in Germany, Portugal and China, will transfer to a new firm; the statement did not reveal a sale price. However, the transaction could be worth €200 million , or $261 million, depending on the value of patents that are included, according to the analyst Robert Jakobsen at Jyske Bank in Denmark. Nokia Siemens said that the transaction will likely close in the first quarter of 2013, and Marlin will help to supply provide the funds to build a “leadership position” for the new firm, which will be based in München. The designated chief executive, Herbert Merz, said that the company will attempt to grow revenue until its is even with bigger competitors such as Alcatel-Lucent (NYSE:ALU), Ciena Corporation (NASDAQ:CIEN), and Huawei Technologies Co.
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Advanced Micro Devices (NYSE:AMD), which is the second-largest manufacturer of PC processors, saw its shares jump to their highest price in six weeks, as some investors gambled that the firm’s largest shareholder could help avoid a cash shortfall. The stock rose by 6.8 percent to $2.35 at 1:04 p.m. in New York, but earlier touched $2.46 for the highest intraday price since October 19th. Shares had lost 59 percent in 2012 before Monday.
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