ERIC Ericsson

By Dominic Chopping

STOCKHOLM--Ericsson AB Monday quashed a weekend media report that claimed Cisco Systems Inc. was seeking to buy the Swedish networking giant, saying there haven't been any merger talks.

An article by Swedish daily Dagens Industri had suggested that Cisco wanted to reach agreement with Ericsson's board and major shareholders on a possible takeover of the company.

"We note that there are rumors in the market regarding an acquisition of Ericsson by Cisco possibly spurred by the recent announcement of a partnership between our two companies," said Ericsson Chief Executive Hans Vestberg.

"The talks leading up to the partnership announcement have been ongoing for a year and there have not been any discussions whatsoever on a merger or an acquisition," Mr. Vestberg said in a statement on Monday.

Ericsson and Cisco last week announced a wide-ranging business and technology partnership to better take on a rapidly shifting global market and combat the rise of such rivals as China's Huawei Technologies Co.

The pact, announced Monday, stops short of a full-blown merger but has aspects of one: Ericsson, a leader in wireless equipment, and Cisco, which dominates the market for Internet gear, will work together to integrate existing equipment and could develop new products together.

-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter: @domchopping @WSJNordics

= 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 16, 2015 02:51 ET (07:51 GMT)

Ericsson (NASDAQ:ERIC)
Historical Stock Chart
From Mar 2024 to Apr 2024

Ericsson (NASDAQ:ERIC)
Historical Stock Chart
From Apr 2023 to Apr 2024