To confirm the alleged Cisco's acquisition of Nokia, the journalist with the Shanghai-based International Finance News called Nokia and Cisco's office in China respectively, but failed to get any information. By press time, both Nokia and Cisco denied the rumors about the acquisition, calling the rumors groundless hearsay.

According to a report on Aug 7 on a foreign newspaper, Cisco is considering acquiring the world's No. 1 mobile handset manufacturer Nokia in a bid to gain its wireless infrastructure technology.

The report says Cisco had traditionally concentrated on acquisitions of niche technology companies. But its CEO John Chambers seems to have intention to acquire a large wireless infrastructure company, and Nokia has been identified as the most possible target.

Cisco, world's largest maker of Internet equipment, is worth approximately $123 billion, while Nokia's market value is around $71 billion. The EPS of Cisco will be lifted once the merger comes true.

Media in Finland says opportunity has matured for Nokia to merge with other companies as its CEO JorMa-Ollila will retire next year and competition in the mobile phone markets in US and Far East is getting heated.

By People's Daily Online