Nokia, Siemens merge phone equipment units

NEW YORK (Reuters) - Nokia and Siemens AG agreed to combine their phone

equipment units in a deal worth around $31.6 billion, the Wall Street Journal

reported on Sunday, citing people familiar with the matter.

The combined company would contribute both of their network equipment

operations into a new entity to be based in Nokia's home country of Finland, the

Journal reported, with Nokia retaining a majority of board seats.

The new company will be owned on a 50-50 basis by both corporate parents, the

Journal reported.