HELSINKI: Nokia's move to buy out Siemens AG's share of their network equipment joint venture strains a balance sheet already under pressure from a loss-making handset business, which could burn through its cash as soon as next year.
While the 1.7 billion euro (RM7bil) price tag Nokia will pay Siemens to gain full control of Nokia Siemens Networks (NSN) is cheaper than expected and analysts say the business offers good growth potential, the cyclical network business is not profitable enough to cover losses at the mobile phone unit.