Speculation that Tellabs may be acquired by Nokia Siemens sent shares of the telecom-equipment supplier to a 52-week high Monday. The stock rose as high as $13.67, and shares were at $12.30 in AH trading amid reports that the network-equipment maker, which is a joint venture of Finland's Nokia and Germany's Siemens, is willing to offer up to $7 billion, or $16 to $17 a share for the company. TheStreet.com said, however, that a source indicated a deal could take a while to complete because Tellabs' decision "is not imminent." The possibility of a deal comes in the wake of Swedish firm Ericsson's $2.1B takeover of Redback last year. TheStreet.com says Nokia Siemens originally began talks for Tellabs last year that ended, but that sources indicate the deal is back on, because Tellabs "is not recovering" from some recent setbacks. Analysts such as those at Credit TLAB 24 07 2007 ChartSuisse called the speculated price "expensive," but said a deal would represent a "strategically and financially sound" move for Nokia Siemens by strengthening its North American position and beefing up its wireline portfolio. UBS, meanwhile, speculated that a bid for Tellabs might pressure Nortel to get into the market, and suggested 3Com and Sonus Networks as possible targets.

Sources: TheStreet.com, MarketWatch
Commentary: Nokia Reportedly Makes $7 Billion Takeover Bid For TellabsTellabs Warns Badly; Stock A Buy On Bounce?
Stocks/ETFs to watch: Tellabs Inc. (TLAB), Nokia Corp. (NOK), Siemens AG (SI), Nortel Networks Corp. (NT), 3Com Corp. (COMS), Sonus Networks Inc. (SONS)
Earnings call transcript: Tellabs Q1 2007

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.

SA Editor
Susan Lerner

About this author:
Become a Contributor Submit an Article
  • Long Ideas

  • Short Ideas

  • Cramer's Picks

SA Partners

Hedge Fund Jobs

Job Seekers:

  • Search jobs by category
  • Get job alerts by email or live feed
  • Apply online
See full list of jobs »

Employers

  • See all recruitment options
  • Get applications online or by email
Post a job »

Trading Center