Reuters
UPDATE - Cisco CEO says "would love" Nortel partnership
Thursday June 17, 10:11 am ET
By Sue Thomas
(Adds details, background, shares)
TORONTO, June 17 (Reuters) - Cisco Systems Inc. (NasdaqNM:CSCO - News) CEO John Chambers said on Thursday his company would welcome a partnership with Nortel Networks Corp. (Toronto:NT.TO - News).
"I believe in strategic partnerships. I would love to have Nortel as a partner," Chambers told a question and answer session after a speech in Toronto. "I believe going to market together is the way of the future."
But he poured cold water on suggestions that Cisco, the world's largest maker of machines that direct Internet traffic, would buy the beleaguered Canadian telecoms equipment maker.
"I don't know how to do large acquisitions," he said, but added: "Never say never."
Nortel chief executive William Owens told Reuters on Wednesday that Nortel expected "a lot more emphasis on partners" going forward.
"I personally have had associations with a number of them (potential partners) and this is a great opportunity for us to provide bundled solutions that make real sense for our customers and can do a lot for our business," Owens said.
"I'm doing a number of things right now...I've met with several CEOs."
Shares in Nortel surged more than 3.5 percent early on Thursday, adding 21 Canadian cents to C$5.85 on the Toronto Stock Exchange and climbing 16 cents to $4.25 on the New York Stock Exchange.
Nortel, a former market darling that's now wrestling with a much publicized accounting mess, is reviewing its financial statements for a period stretching between 2001 and 2003, and has said it will need to restate results for a second time.
It has fired several senior executives, including former CEO Frank Dunn.
Chambers also said Cisco would focus on small buys that come with talent.
Cisco said on Thursday it would buy privately held Procket Networks, a smaller maker of routers, for $89 million in cash.
It is the third acquisition announced by Cisco this year, following deals to buy two security technology companies in March.
(Additional reporting by Susan Taylor in Ottawa)