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Technology Stocks : Ericsson overlook?
ERIC 9.680+0.6%3:59 PM EST

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To: Puck who wrote (4316)9/22/2000 6:45:54 AM
From: elmatador  Read Replies (2) of 5390
 
About a merge to create NOKISSON
Nokisson: Wireless
Erikia: Wireline

ERICY could get its headquarters out of Sweden which they planned but not realized.

Creation of Erikia would combine Ericsson AXE and access technologies with Nokia's ADSL business into one entity.

Ericsson's Datacoms capacity would be very attractive to NOK.

Streamlined sales worldwide. Significant savings here.

Regardless of the appeal it may have to shareholders, this merge cannot be feasible due to the jobs that will be cut and this is not palatable in Sweden.

Volvo was tried to merge with Renault if you need prove. Volvo ended up selling their trucks business to Ford and retreat into only automobiles.

What is really gong to happen is that both NOK and ERICY will retreat into niche playing. Like Volvo and Apple computers: making nice products and solutions but they don really matter anymore.
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