14 DAY TRIAL // Market analysts predict either UTStarcom Inc. or Harbor Networks Holdings Limited may be the next acquisition target for Ericsson AB, following the Swedish telecom giant's latest buy into UK-based Marconi Corporation Plc. In October, Ericsson earmarked 1.2 billion pounds (US$2.1 billion) to acquire Marconi's key telecom businesses, in line with its strategic aim of building strength in complementary markets.
Ericsson has announced plans to acquire a China-based company, but has not yet specified its target. Analysts see each of these companies as supplements to Ericsson's data-networking business in the country. While many consider Harbor Networks' data product as the better one, UTStarcom's complete marketing network would bring obvious advantages.
Sources close to UTStarcom said the Nasdaq-listed company is seeking overseas alliances for some of its businesses and Harbor Networks, hard-pressed by its old rival Huawei Technologies Co Ltd, is thirsty for a cash injection.
Recently, Harbor has looked to Siemens for an acquisition, but neither company confirmed the reports. In fact, both companies are in financial trouble.