Ericsson Says No Merger Talks With Cisco
November 16 2015 - 3:06AM
Dow Jones News
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
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(END) Dow Jones Newswires
November 16, 2015 02:51 ET (07:51 GMT)
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