GEC is to buy out Siemen?s stake in their joint telecomms venture GPT for #700 million.
The future of the telecomms technology vendor has been in the balance since last July when GEC and Siemens began their discussions. GEC will now acquire Siemen?s 40 per cent stake in GPT which will be merged into the engineering giant?s Marconi arm. The combined unit will be known as Marconi Communications.
GEC and Siemens have spent almost a year thrashing out GPT?s future. According to a spokesperson there were originally four options: for Siemens to buy GEC?s 60 per cent stake; for GEC to acquire Siemen's share; to sell the 60 per cent to the highest bidder; or for the partnership to continue but under a different structure.
Analysts had been expecting Siemens to gain full control because of GEC?s desire to return to its industrial engineering business, and as Siemens owns much of GPT?s technology.
GEC managing director, Lord Simpson said: ?GEC has become a more streamlined group, focused on three core business areas of defence electronics, communications and industrial electronics. The formation of Marconi Communications demonstrates our responsiveness to the needs of our customers.?
GPT develops synchronous digital hierarchy (SDH) technology that allows telcos to carry large amounts of complex voice and data traffic. It also sells intelligent switched network products.
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