Internet equipment maker Cisco is interested in acquiring Nokia, the world’s largest manufacturer of mobile phones, according to several media reports. A Nokia spokeswoman Monday declined to comment on the report.
Cisco spokesman David Cook played down such talk. “Of the 103 acquisitions we’ve made over the past 20 years, almost all of these have been small, technology-rich companies,” Cook said. Nokia is estimated to be valued at $87 billion dollars.
“We view such a deal as inconsistent with Cisco’s acquisition history and strategy going forward – preferring smaller, niche technology purchases with revenue growth rates above Cisco’s current 10% to 15% level,” states UBS Warburg Analyst Nikos Theodosopoulos. “We believe it would hinder Cisco’s ability to achieve its 10% to 15% revenue growth target.”