Siemens CEO says unhappy with JVs

Speculation rises that the German conglomerate may seek to exit its joint venture with Nokia.

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By  Michele Howe Published  October 7, 2007

Speculation is rife that German conglomerate Siemens AG may be seeking to pull out of its joint venture with Nokia after remarks made last week by its CEO.

According to a report by Reuters, Peter Loescher, who recently took over at the helm of Siemens, said he was unhappy with Nokia Siemens Networks (NSN), the joint venture Siemens and Nokia established earlier this year.

"We are absolutely not satisfied with NSN," he said.

The German firm looks unlikely to be able to exit NSN, however, due to contractual terms that are understood to lock the firms into the agreement until 2013.

Nokia and Siemens was formed out of a merger between Siemens Networks and Nokia Networks Business Group, which was first announced last year.

The company is understood to employ between 3,000 and 4,000 people in the Middle East.

Loescher also expressed displeasure with the performance of the company's other IT alliance Fujitsu Siemens, according to the report.

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