If speculation is any indication, Tellabs is the belle of the telecom equipment ball these days amid reports Nortel and Nokia could be interested in acquiring it. However, UBS analyst Nikos Theodosopoulos said Nokia and Nortel both had weak second-quarter results, which could delay any deal-making in the short-term.
“Following a weak 2Q, NSN is likely to focus on integrating the two companies rather than large M&A,” he said in a research report. “NT also had a weak 2Q, resulting in a sagging stock price, while a weak credit environment would make a debt offering for M&A much more expensive for NT.”
According to Light Reading, Theodosopoulos dropped his price target for Tellabs from $14 to $11.50, due to the lower probability that the company will be bought in the short term. Nokia apparently offered $16 to $17 a share for Tellabs in July while Nortel was reportedly willing to offer $14 to $15.
No Suitor for Tellabs
If speculation is any indication, Tellabs is the belle of the telecom equipment ball these days amid reports Nortel and Nokia could be interested in acquiring it. However, UBS analyst Nikos Theodosopoulos said Nokia and Nortel both had weak second-quarter results, which could delay any deal-making in the short-term.
“Following a weak 2Q, NSN is likely to focus on integrating the two companies rather than large M&A,” he said in a research report. “NT also had a weak 2Q, resulting in a sagging stock price, while a weak credit environment would make a debt offering for M&A much more expensive for NT.”
According to Light Reading, Theodosopoulos dropped his price target for Tellabs from $14 to $11.50, due to the lower probability that the company will be bought in the short term. Nokia apparently offered $16 to $17 a share for Tellabs in July while Nortel was reportedly willing to offer $14 to $15.