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Siemens flogs chunk of telco unit

US buys into German firm

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Siemens has finally found a buyer, or at least part-buyer, for its corporate telecoms business.

Siemens Enterprise Communications is now 51 per cent owned by Alec Gores and the Gores Group. It will be combined with Enterasys and SER Communications. Enterasys was originally the enterprise arm of Cabletron before going private in 2005.

Siemens keeps a 49 per cent stake. Gores and Siemens will invest €175m each and the joint venture will continue to focus on energy, industry and healthcare markets. The deal will have a negative impact on Siemens' fourth quarter.

Gores will take the lead in running the business and patents and licenses will be moved to the new business. Production in Leipzig will be maintained till 2011 at least, Curitiba in Brazil "will be an important production for the joint venture", the company said. But Siemens is looking at different options for the factory in Thessaloniki, Greece.

SEN will continue to be a preferred supplier to Siemens, and announced 6,000 job cuts in February. ®

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