Jane Chen / Shanghai Daily news
Market analysts predict either UTStarcom Inc. or Harbor Networks Holdings
Limited may be the next acquisition target for Ericsson AB, following the
Swedish telecom giant's latest buy into UK-based Marconi Corporation Plc.
forecast, cited by today's China Business News (CBN), came after Ericsson's
President and chief executive officer, Carl-Henric Svanberg, revealed last
Friday in South China's Guangzhou city that his company is engaged in talks
concerning an acquisition in China.
He didn't name the target,
describing it as a business secret.
In October, Ericsson earmarked 1.2
billion pounds (US$2.1 billion) to acquire London-based Marconi's key telecom
businesses, in line with its strategic aim of building strength in complementary
It also derives from this strategy that Ericsson needs a unit in
China to supplement its data-networking business here, according to analyst Cui
Xiaolong with Analysys International.
"Harbor Networks has the advantage in
terms of its data product, while UTStarcom has a complete marketing network," he
In fact, both companies are in financial trouble.
Sources close to
UTStarcom said the Nasdaq-listed company is seeking overseas alliances for some
of its businesses and Harbor Networks, hard-pressed by its old rival Huawei
Technologies Co Ltd, is thirsty for a cash injection.
has reportedly offered itself for sale in talks with Germany's Siemens AG, but
both parties denied the report.
Siemens' mobile networking president
Christoph Caselitz disclosed that his company is considering operating more
research and development centers in China in the coming years and may make
acquisitions at an appropriate time, the CBN report said.