Nokia to merge mobile networks unit with Siemens
Singapore: In a landmark event Finnish telecom equipment major is merging its mobile networks division with Siemens' less profitable business. This will create the world's third-largest telecom equipment company with combined revenues of $20bn (£11bn) in 2005. The joint venture with 50:50 equity participation by both companies, will consist of Nokia's Networks Business Group and Siemens' carrier-related operations for fixed and mobile networks.

The new entity called Nokia Siemens Networks will have 60,000 employees across the world.

Nokia Siemens Networks will have its operational headquarters in the Helsinki, Finland. Seimon Beresford-Wylie, currently executive vice-president and general manager of networks at Nokia, will assume the position of chief executive officer immediately upon the closing of the merger expected to take place before January 1, 2007.

The merger provides both companies with scale in an intensely competitive market. Chinese competitors such as Huawei have undercut traditional players on price and taken significant market share from established rivals. Last year, the British telecom equipment company Marconi was sold to Ericsson for £1.2bn after it lost out to Huawei in the massive upgrade of BT's UK network. Recently, France's Alcatel agreed to merge with US equipment maker Lucent to build scale. Analysts say 6,000 and 9,000 jobs will be axed as a result of the merger. Nokia will take the helm and seek to address the problems Siemens has struggled to address in its telecoms equipment division for the past six years.
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Robert Zoelick returns to Goldman Sachs
Robert Zoellick quit his post as US deputy secretary of state to return to investment bank Goldman Sachs. His resignation comes after he was passed over for the job of US Treasury Secretary last month. The job went to his old friend and Goldman Sachs's chairman, Henry Paulson.

Zoellick has been with the Bush administration since 2001, first as US trade representative and then as the White House deputy chief of staff.

Zoellick will now be vice-chairman, international and serve as the chairman of Goldman's international advisers. The position will shape the firm's global strategy, particularly in developing markets.

Zoellick advised the White House on major foreign policy issues, including its political and economic relationship with China and played a crucial role in US negotiations with regimes in the Middle East and Latin America.
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