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British telecom equipment maker Marconi Corp. Plc. was in talks to be taken over by its Chinese partner Huawei Technologies for more than 600 million pounds (US$1.07 billion), the Sunday Times newspaper said.
Marconi, whose prospects were thrown into turmoil earlier this year after top customer BT Group Plc. bypassed it on a major contract, has previously said it was considering all strategic options.
The paper, citing unnamed sources familiar with the talks, said Huawei was yet to present a formal proposal to Marconi’s board and finalizing a takeover could take many months.
“Marconi is also understood to be continuing to pursue other strategic options, including talks with other prospective buyers,” the Sunday Times said.
The British firm and Huawei, China’s biggest telecommunication equipment maker, already have an agreement to distribute each other’s products.
The paper said Marconi was represented in the talks by Morgan Stanley, while Huawei had enlisted investment bank UBS to advise it on the transaction.
Huawei and its top domestic rival, ZTE Corp., have been using their low-cost advantage to expand abroad aggressively in the last two years, scoring major deals in less-developed markets like the Middle East, Africa and Eastern Europe.
Shenzhen-based Huawei has also been aggressive in Western Europe in recent months, announcing major sales and tie-ups with such major names as Dutch carriers Telfort and KPN and Britain’s BT.
(Shenzhen Daily August 8, 2005)
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