Ericsson-Juniper: Will They Or Won't They? (ERICY, JNPR)

Are Ericsson and Juniper on deck as Most Likely to Merge?

Citigroup (in MarketWatch), in a note to clients, wrote that an L.M. Ericsson (ERICY) Juniper Networks (JNPR) merger is becoming "increasingly likely" as it sees a "good fit" between the two. "While Juniper is not for sale, at the right price a deal could make sense," Citigroup said.

Ten long days ago, Forbes quoted UBS analyst Nikos Theodosopoulos on the improbability of a union between the two: "The analyst wrote in a Wednesday report that Ericsson has historically engaged in value-centric mergers and acquisitions and a deal for Juniper would likely be dilutive."

Om Malik commented on the Forbes story: "Picking through my sources, I have been manage to piece together that all this just might be talk. Given the current issues with Juniper, their management turnover, Juniper is risky buy. In addition, the cost of a deal would be highly dilutive for Ericsson. The impact on Ericsson stock could be huge."

At least as far as Citigroup is concerned, ten days can make the world of difference. Any thoughts on increased likelihood of a deal following the Lucent (LU) -Alcatel (ALA) engagement?