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Huawei in Talks to Buy Marconi
2005-8-8 15:04:07      Associated Press
Chinese Telecoms Maker Huawei in Talks to Buy British Partner Marconi.  
Huawei Technologies Co., China's biggest maker of telecommunications equipment, is considering buying Britain's Marconi Corp. PLC in the latest foreign takeover bid by a Chinese company, news reports said.

The deal could be worth 560 million British pounds (US$1 billion; euro810 million), the Sunday Times of London reported. The talks also were reported by the Financial Times, which said analysts don't believe Marconi can survive as an independent company.

The news comes less than a week after state-controlled Chinese oil company CNOOC Ltd. gave up its US$18.5 billion (euro15 billion) bid for U.S. oil and gas producer Unocal Corp.

Chinese companies have launched a series of takeover bids abroad as they try to establish a role among leading global players in industries ranging from computers to energy.

A woman who answered the phone Monday at Huawei's headquarters in the southern Chinese city of Shenzhen refused to transfer a call to the company's publicity office.

Marconi effectively put itself up for sale in May after losing out on a 10 billion pound (US$5.7 billion; euro4.6 billion) contract to build a new network for British Telecom, its biggest customer, according to the Financial Times.

Huawei was one of eight companies selected by BT on the network contract, according to the Financial Times.

Marconi and Huawei signed a partnership deal in May under which the British firm will market Huawei's network technology in Europe while the Chinese company sells Marconi's wireless equipment in Asia, according to the Sunday Times.

Founded by the Chinese military to produce high-tech communications gear, Huawei has expanded rapidly into civilian telecoms, selling low-cost equipment in other developing countries.

It has tried with only mixed success to break into the United States and other developed markets.

Marconi, named for the Italian inventor of radio, once was one of Britain's industrial giants.

(Photo: google)

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