Ericsson Buying Juniper?

Not that you can take it to the bank, but the word from Sweden is that Juniper is going to be taken over by Ericsson. It is hard to imagine why Juniper, despite its recent problems, will be willing to sell out? Juniper has a market capitalization of around $11.4 billion, while Ericsson commands about $55 billion in market valuation. You can read the AFX news report (via Forbes) on this whole rumor – right here. Any thoughts?

Update: Picking through my sources, I have been manage to piece together that all this just might be talk. Given the current issues with Juniper, their management turnover, Juniper is risky buy. In addition, the cost of a deal would be highly dilutive for Ericsson. The impact on Ericsson stock could be huge. Wall Streets believe Ericsson however might be going IP shopping. So why the rumors? Apparently, Juniper is getting a big win in China, but under the cover of Ericsson. In case you missed it – Juniper won a $120 million contract from Microsoft (over two years.) On good news front, Juniper has dropped its lawsuit against messageboard posters.

Update #2: Juniper doesn’t fit the bill in terms of production profile, market capitalization or valuation, says Dresdner Kleinwort Wasserstein.

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