Nortel To Buy Tellabs?

Light Reading is reporting that Nortel may be taking a serious run at Tellabs - a deal that would cost it $4.5-billion based on Tellabs’ current market capitalization.

One source told Light Reading that a Nortel-Tellabs combination makes sense because there is very little product overlap, and Tellabs had technology that could give Nortel’s optical portfolio a much-need update. Tellabs also has some interesting wireless technology that could be used as backhaul.