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

Social Media

Reuters Showcase

New Device

New Device

Facebook's Oculus unveils new virtual reality prototype device.  Full Article 

Slow Rollout

Slow Rollout

Los Angeles iPad rollout for schools slowed by technical challenges - report.  Full Article 

CEO Watch

CEO Watch

When music stops for Oracle CEO dance, Catz may grab Ellison's chair - analysts.  Full Article 

New iPhones

New iPhones

Apple faithful line up for latest, larger iPhones  Full Article 

Cutting Jobs

Cutting Jobs

Microsoft lays off 2,100 as part of earlier job cut plan.  Full Article 

Reuters India Mobile

Reuters India Mobile

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