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Cisco to acquire Nortel?

 
 
DPGumby
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      10-15-2005
My question would be why? What does Nortel have that Cisco would want so
desperately? Sure with the drop in Nortel's stock price it would be a
relatively a cheap buy but again why? Cisco has usually been pretty smart in
its buys but I don't know if buying Nortel would be considered smart. Do
they want the base, their manufacturing capacity, engineering resources or
their huge debt? Would they want Bay Networks portfolio? What hole in
Cisco's offerings would the purchase fill? There has to be some kind of
reason for a take over, Nortel is not exactly a small entity, they would
still take a lot of money to purchase. You also have to remember the two
cultures are completely different. Nortel is still from the old telco
religion, everytime a data company has taken over a telco player it hasn't
exactly been peachy. The data and telco worlds are still very differect
mentalities.

Me, I don't see it. Also I doubt that a "Nortel rep" would yak somethng like
that even if true. " Yeah Cisco is buying us so why don't you run out and
buy our stock before it jumps in price due to this merger" I don't think so.
Maybe I see it in the Wall Street Journal, I take it seriously.


"Ramon F Herrera" <(E-Mail Removed)> wrote in message
news:(E-Mail Removed) oups.com...
> Yesterday in Houston, a Nortel representative said to a customer that a
> Cisco acquisition of Nortel is in the works. He added that Nortel has
> been restructuring itself in anticipation to the acquisition.
>
> Since I am at the Asterisk conference, I presented the above as a
> question to one of the conference speakers, who happens to be very
> knowledgeable about the two companies. His answer? "I have heard that
> claim before but I'll believe it when I see it... Nortel's hardware is
> excellent but its software sucks".
>
> Any comments?
>
> -Ramon F Herrera
>



 
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