A rumor is afoot that German tech giant Siemens, via its Communications Group, and Canadian telecom tech provider Nortel are thick in merger talks which are about to bear fruit. This isn’t really surprising given the consolidation in the telecom tech sector, which is a domino effect of the consolidation in the telecom carrier sector. And the idea has been bandied about for a while.
Nortel is facing a tough market, made tougher by the merger of Lucent-Alcatel. Moreover, the company is coping with chronic accounting problems simultaneously. It might just make sense for Nortel to solve its woes by a sale.
Siemens, particularly the company’s Communications Group, which has made a relatively recent push to capture a bigger share of the North American telecom market, would be getting in Nortel a company rich with VoIP and enterprise telecom capabilities. This core expertise dovetails nicely with Siemens’ skills.
The Siemens purchase of Nortel could, however, just be the rumor du jour. Not too long ago some press reports suggested that Siemens would be selling its communications group to Motorola.
Cynthia Brumfield at 11:29 AM|Comments(0)
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