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Huawei Technologies Co., China's biggest maker of telecommunications equipment, declined to comment on a Sunday Times newspaper report that the company was in talks to take over Marconi Corp., a UK phone-equipment maker.
“We don't comment on speculation about our business activities,’’ said Fu Jun, a spokesman at Huawei in a telephone interview from Shenzhen on Monday. Huawei, founded in 1988 by Ren Zhengfei, in January signed an agreement with Marconi to jointly distribute each other's products and to conduct research and technology.
A transaction could value Marconi at more than 600 million pounds (US$1.06 billion), the Sunday Times reported Sunday, citing unidentified people familiar with the discussion. “We are not going to comment at this stage,’’ David Beck, a Marconi spokesman in London, said Sunday.
“It would be a good move for Huawei as it would immediately raise its international visibility as Marconi is an established brand name, and accelerate the company's overseas expansion plans,’’ said Zhou Yi, an analyst at Analysys International, a Beijing-based technology market researcher, who estimates the deal at about US$1 billion.
A formal proposal had not been sent to Marconi's board and the two companies' existing partnership to distribute each other's products does not mean a merger was certain, the Sunday Times said, adding that Marconi was also pursuing options including talks with other companies.
Marconi was represented in the discussions by Morgan Stanley, and Huawei's president Ren brought in UBS AG as adviser, the UK newspaper said.
(Shenzhen Daily August 9, 2005)
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