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8/17/2011 NSN Calls Home for € 1 Billion

Following a failed attempt at a sale, Nokia Siemens Networks (NSN) needs a large sum of money to restructure their business, and now they've resorted to calling home for more money.

An insider quoted in the German magazine Capital has revealed that NSN is asking parent companies Nokia Corp. and Siemens AG for € 1 Billion to complete a restructuring and stay afloat. The unnamed insider claimed there was, “no other option” and that a large influx of capital was the only solution that would enable the NSN restructuring to go through.

NSN posted a $160 million loss in the latest quarter, and abandoned the sale of the joint venture to private equity bidders. According to Capital, NSN will exhaust its credit lines in about 10 months.

Standard & Poor's recommended a significant workforce reduction in a report in July. Earlier this month, NSN cut 1,500 jobs from a unit it purchased from Motorola this year, starting down the long road of restructuring.

--Jesse Cryderman, Senior Editor



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