Rumor: Cisco looking to buyout Nokia

Cisco Systems Inc.  is
considering buying the world's top mobile handset maker

Nokia
(NOK1V.HE) in a bid to gain its wireless infrastructure
technology, the Business newspaper reported on Sunday.

The paper, which did not reveal the source of its
information, said U.S.-based Cisco had traditionally
concentrated on acquisitions of niche technology players, but
its Chief Executive John Chambers is believed to be interested
in merging with a wireless infrastructure company.

"Nokia has been identified as the most likely target," the
paper said.

Cisco, the largest maker of Internet equipment, is worth
around $123 billion, while Nokia's market value is around $71
billion.

The paper said Cisco's mainstay networking market was fast
changing with the convergence of fixed-line and wireless
networks, and Cisco needed a merger to acquire the technology
to create intelligent wireless applications, which
Finnish-based Nokia could provide.

Cisco declined to comment. A Nokia spokeswoman in Helsinki
also declined to comment.