Nokia, Siemens set telecom deal

NEW YORK -- European telecommunications makers Nokia Corp. and Siemens AG have agreed to combine their telephone equipment units in a deal valued at roughly $31.6 billion, according to a newspaper report.

Nokia would control a majority of board seats of the new company, which would be based in Finland and would not be traded separately, The Wall Street Journal reported yesterday on its website, citing people familiar with the deal, which was expected to be announced today.

Ownership of the new company would be split evenly between Nokia and Siemens and would be headed by a Nokia executive, Simon Beresford-Wylie, according to the report.

The combination would allow both companies to reduce redundant research and development spending, with savings as high as $1.58 billion annually, according to the report.