Nokia mulls buying Juniper to expand network unit - report

FRANKFURT/HELSINKI Thu Feb 20, 2014 5:49pm IST

A woman walks past a banner with the logo of Juniper Networks Inc. covering the facade of the New York Stock Exchange, October 29, 2009. REUTERS/Brendan McDermid/Files

A woman walks past a banner with the logo of Juniper Networks Inc. covering the facade of the New York Stock Exchange, October 29, 2009.

Credit: Reuters/Brendan McDermid/Files

Related Topics

Stocks

   

FRANKFURT/HELSINKI (Reuters) - Finland's Nokia (NOK1V.HE) is considering buying U.S.-based Juniper Networks (JNPR.N) to merge into its telecommunications network gear business, German's Manager Magazin Online reported, citing unidentified sources.

Nokia Solutions and Networks Chief Executive Rajeev Suri travelled to the United States late last year to discuss with Juniper's management closer cooperation and a possible merger that would strengthen NSN's weak U.S. business, the online magazine said on Thursday.

Juniper has a stock market value of $13.7 billion, making it a major takeover target for Nokia, but Manager Magazin said Nokia could use Juniper's $3.1 billion cash to help finance the purchase.

NSN will be Nokia's primary operation after the sale of its Devices and Services business to Microsoft (MSFT.O) in a 5.4 billion euro deal, which is expected to close by the end of next month.

A source familiar with NSN's strategy said no such deal was imminent. Analysts have said, however, that NSN and other smaller network equipment players are likely to pursue M&A deals, because bigger players can afford to spend more on research and development.

Representatives of Nokia, NSN and Juniper declined to comment on the latest report.

NSN and Juniper are already in a partnership to jointly develop and sell network equipment to carriers.

After years of concentrating on cutting costs, NSN has said it is now focussing on expanding the business and competing more aggressively against industry leader Ericsson (ERICb.ST) and China's Huawei.

NSN has shown it is willing to lower its bids to win more work, and analysts say it may also seek to expand its market share through acquisitions.

Other sources have said Nokia has considered a tie-up between NSN and French rival Alcatel-Lucent (ALUA.PA). Suri has not ruled out acquisitions but has also said the company could grow on its own.

(Reporting by Maria Sheahan, Ritsuko Ando and Harro ten Wolde; Editing by David Holmes and Jane Baird)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Wipro Results

People walk in the Wipro campus in Bangalore June 23, 2009. REUTERS/Punit Paranjpe/Files

Wipro sees rosier end to year as U.S. clients spend

India's third-biggest software services firm Wipro Ltd , under pressure to improve lacklustre sales growth, said it saw a rosier end to the year as more confident U.S. clients increase spending.  Full Article 

Reuters Showcase

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

Apple-1 Auction

Apple-1 Auction

Early Apple computer sells for $905,000 at auction.  Full Article 

No More Nokia

No More Nokia

Microsoft looks set to drop Nokia name from smartphones.  Full Article 

User Data Security

User Data Security

Apple CEO discusses security with top Chinese official amid hacking claims - Xinhua.  Full Article 

Patent Wars

Patent Wars

Big Tech winning battle with 'patent trolls'.  Full Article 

Record Season

Record Season

FedEx expects record peak volume of 22.6 million packages on Dec. 15.  Full Article 

Yahoo Earnings

Yahoo Earnings

Yahoo ekes out Q3 revenue gain despite display ad weakness.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage