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Cisco, Nokia merger would make sense: Analyst

With the rumor mill swirling about a possible buyout of all or part of Nokia Corp. by Cisco Systems Inc., a London,...


August 9, 2005  


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With the rumor mill swirling about a possible buyout of all or part of Nokia Corp. by Cisco Systems Inc., a London, Ont. analyst says if such a deal were to happen it would be beneficial for both companies.

“A potential merger between Cisco and Nokia is good for the companies and their customers,” George Goodall, an analyst with Info-Tech Research Group said today.

“Cisco’s wireless infrastructure sales in Europe have been flat and Nokia’s network division has been struggling in North America, while their European sales are quite strong.

“With a merger, Cisco would get wireless technology and a European presence and Nokia would get a North American presence.

“If the companies merge, business users of either Cisco or Nokia products would have a unified solution, all the way from their network backbone to their end-user devices. Additionally, Cisco customers would have a viable
wireless strategy, which they don’t currently have.”

The rumors of a merger first surfaced on the weekend in a British business publication.