Huawai in takeover talks with Marconi

8 Aug 2005

Chinese equipment manufacturer Huawei is reportedly holding discussions with troubled British counterpart Marconi which could lead to a GBP560 million takeover. Marconi has effectively been up for sale since April, when it failed to land a crucial GBP10 billion contract with its biggest customer BT. CEO Mike Parton has been reviewing his company’s options, amid concerns that it is too small to compete with the industry heavyweights. Marconi and Huawei have been partners since earlier this year, when the pair agreed to market each other’s products in their regions.

China, United Kingdom