Nokia Siemens Networks expected to start operations in the first quarter 2007

Nokia and Siemens announced today that the planned merger to create the new company Nokia Siemens Networks is expected to close in the first quarter 2007. In light of the current investigations of Siemens, the scope of which includes the carrier-related business to be transferred to the new company, Nokia and Siemens intend to adjust their agreements in order to have Siemens conduct an appropriate compliance review prior to closing of the transaction. This adjustment is an addition to the previously agreed closing conditions. Nokia will participate actively in the review.

Nokia Siemens Networks is now expected to start operations in the first quarter 2007, instead of January 2007 as previously expected. Closing will be subject to an agreement between Nokia and Siemens on the results and consequences of a Siemens compliance review. The review is expected to be performed during the first quarter 2007.

Nokia and Siemens have also agreed that the results of the compliance review will be used to develop a compliance program which will be implemented from the start of Nokia Siemens Networks operations.

Nokia and Siemens have made good progress towards the integration of Nokia Siemens Networks. The transaction has been given US and EU antitrust approvals, and the new company’s global mode of operation and organizational structure have been defined.

Source: Nokia PR

Ouch indeed. Although I think this is more for show than for anything else. Show the stock holders that yea we really do care about this issue, while internally they know they have to have a spotless image in the publics eye. Like I said before, I’m sure corporate bribery happens all over the place, these guys just happened to get caught. Oh well, better luck next time!