Bribery probe threatens Siemens/Nokia telecoms merger

$555 million bribery scandal at German conglomerate Siemens is threatening its agreement with Nokia to combine their fixed and mobile network infrastructure businesses in a 50-50 joint venture, a deal both companies regard as crucial to react to the consolidation of the industry and the rise of low-cost competitors from China.

In a joint statement, the companies said that Nokia Siemens Networks was now expected to start operations in the first quarter 2007, instead of January 2007 as previously expected.

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