Nokia and Siemens have shelved plans to sell a stake in their network equipment joint venture and will instead look to inject more cash in the company. People familiar with the matter told the Wall Street Journal that the shareholders failed to reach an agreement to sell a controlling stake in Nokia Siemens Networks. Now they are exploring a "self-help" deal for the business, where each company might put more cash into the venture. Talks to sell a stake in the venture to a consortium that includes private-equity firms Gores Group and Platinum Equity are unlikely to go anywhere, according to the paper's sources. A private-equity group that includes Kohlberg Kravis Roberts & Co and TPG Capital also dropped out of the auction earlier. Final bids were due three weeks ago. It was unclear why the companies were unable to reach a deal, but one source said Nokia Siemens is uneasy striking a deal with the buyout firms, which are known for investing in distressed assets. Alternative solutions could include Siemens taking control of the company or the sale of a minority stake to KKR or TPG.
