Nokia Siemens Sees Motorola Deal Closing 1Q Despite Injunction

Telecom gear vendor Nokia Siemens Networks still expects its planned acquisition of most of Motorola's network equipment assets to close by the end of the current quarter, despite an adverse preliminary court injunction, press spokeswoman Riitta Mard said Wednesday.

The preliminary injunction, issued by a federal judge in Chicago Tuesday, prevents the transfer of any Huawei Technologies Co. secrets through the planned acquisition.

Huawei, the Chinese privately-held telecom equipment vendor, last month took legal action to delay the deal, arguing that Motorola has sold Huawei-branded gear in the past, and that its intellectual property could therefore be transferred to rival Nokia Siemens through the planned acquisition.

Still, Mard said Wednesday that Nokia Siemens has "absolutely no interest" in Huawei's trade secrets, adding that the company wants to buy the Motorola assets to gain access to new customers and make inroads in markets such as the U.S. and Japan.

Nokia Siemens will now evaluate the Chicago court's order to decide its next step, she said, adding that the company is also working with Chinese authorities to gain the final regulatory approval needed to finalize the acquisition.

Motorola Tuesday noted that the judge didn't expressly forbid the sale of any assets, and said the deal should close this quarter.

Nokia Siemens Networks, a joint venture between Finland's Nokia Corp. (NOK) and Germany's Siemens AG (SI), last year agreed to buy the bulk of Motorola's network equipment business for $1.2 billion, but the transaction has been delayed while Chinese antitrust authorities review the deal.

Motorola has since split into two separate companies; Motorola Mobility Holdings Inc. (MMI) and Motorola Solutions Inc. (MSI).

By Gustav Sandstrom, Dow Jones Newswires; +46-8-5451-3099; gustav.sandstrom@dowjones.com

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