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Ericsson takeover rumors swirl in Sweden
Posted: 03-May-2002 [Source: Global Wireless]

[Speculation has Nokia pegged as likely acquirer of Ericsson.]

Stockholm, Sweden -- "Ericsson has dismissed market speculation in Sweden that its latest swing of the downsizing ax is driven by a need to attract a takeover suitor.

Nokia is being linked as the likely acquirer, although students of corporate history will well recall that on the previous occasion Nokia took an acquisitive interest in Ericsson, the result almost sent the company to an early grave.

Nokia would certainly jump at the chance of acquiring Ericsson's mobile handset and short message service (SMS) technology operations. However, the Finnish company may well have second thoughts if the asking price is unreasonable. For its part, Ericsson is unlikely to strike a deal on the basis of a straight takeover. A "merger of equals" is a more likely scenario."

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