British based Marconi would not discuss rumors of a possible purchase of the venerable telecom company by Ericsson. Stocks took a leap on the speculation the rival Swedish firm was eyeing Marconi.
The Marconi Corporation plc is a descendent of the original wireless technology company founded by wireless radio inventor Guglielmo Marconi and the General Electric Company (GEC not GE).
Marconi spokesman David Beck said in a Reuter's story, ""We do not comment on rumors and this is just another rumor," and had no plans to issue a statement on Monday.
Although Marconi didn't confirm the deal, it is known that Marconi has been in negotiations with a number of companies including Ericsson, Siemens, Alcatel and Chinese company Huawei. The Financial Times reported the Huawei deal could be problematic though as Marconi does have defense contracts.
Marconi ran into its major trouble spot for the current situation when it lost the British Telecom contract to Ericsson. This quickly dropped the bottom out of the Marconi share prices. They've been climbing as a result of the current speculation.
Many investors feel an Ericsson/Marconi deal would be a good move. Sources speculate an official announcement regarding the acquisition could come in the next few weeks.
John Stith is a staff writer for WebProNews covering technology and business.
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