Nokia Siemens borrows 1.2 billion: NSN struggle
After its initial setup back in 2007, Nokia Siemens Networks was on a downward spiral. This decline was brought to a head in November of last year when NSN announced that it would be cutting its workforce by nearly a quarter losing 17,000 jobs.
As indiatimes.com reports, in order to pay up for a large redundancy programme, the maker of mobile phone network equipment gathered a group of US and European banks such as Citibank and Bank of America to raise more than 1.2 billion euros. With this funding, the company hopes to move into more profitable times. Its decline was forced by outpricing from its rivals.
Only last year NSN’s owners Nokia and Siemens were forced to input an extra 1 billion euros of equity after the company’s plan of selling the business failed. Its been reported that in order for the company to have any chance of achievement, approximately 600 million euros would have to be provided as a short term 12-month loan, with the proviso that it will be replaced in the summer of 2013, with the money owing coming over a three year period.
Added to this, NSN would find other methods of raising money, for example through the capital market and the issuing of bonds.
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