Rumors

Telecom Asia, Sept, 2005

RUMORS: It's around that time of year when the business media gets bored and starts reporting rumors of unlikely M&As.

For example, the UK Sunday newspaper The Business reported last month that Cisco Systems is planning to buy Nokia.

Nokia has declined comment and Cisco chief John Chambers ridiculed the idea of Cisco buying any company bigger than 200 people.

"It is extremely unlikely for us to ever do a large acquisition. My view is, most all of them fail," Chambers said at the end of Cisco's Q4 earnings call (without naming names), reports Light Reading.

Slightly less silly is the rumor that Huawei Technologies is looking to buy Marconi, given that Huawei wants to boost its European business and needs serious regional service support now that it's on BT's 21CN project. Marconi, meanwhile, said in a statement to the London Stock Exchange last month that it has been in M&A discussions with "third parties about potential business combinations."

In conclusion: Huawei needs heavy European presence. Marconi is looking for a buyer. Coincidence? Stay tuned!