Sunday, August 7, 2005

Marconi Comments of Huawei Merger Speculation

In response to press speculation on a possible acquisition bid by Huawei, Marconi issued a statement saying that it is continuing "to pursue all strategic options with the objective of maximising shareholder value. These options include, amongst a range of alternatives, discussions with third parties about potential business combinations. The discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place."

  • In May 2005, Marconi and Huawei signed a mutual distribution agreement. The deal had first been reported at the end of January. The companies agreed to resell parts of each other's product portfolio. Marconi will resell Huawei's carrier-class data communications products to telco services providers only under an OEM model or other model as agreed by both companies. Huawei will resell Marconi's microwave radio, including next-generation microwave radio equipment, and associated network services for Huawei's wireless network projects. The two companies have agreed to a process wherein they will leverage their respective sales and marketing teams' capabilities and regional strengths on an account-by-account basis to bring products and support services to as many customers as possible.

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