Siemens Telecom Sale Turning Sour

According to several sources it would appear that bidders are pulling out of the running for Siemens’ corporate telecoms division after finding Siemens’ price expectations for the loss-making unit too high.

Reuters for example reports that Cisco and Avaya, among others, are believed to have walked away from the sale process, which is being managed by Deutsche Bank and Morgan Stanley.

The unit was valued at around €2bn ($2.6bn) by analysts some months ago, but its valuation has come under pressure after another divested Siemens business, making mobile handsets, was attacked for failing to protect jobs. Another source says one of the remaining bidders asked Siemens to pay a dowry for taking the unit off its hands.