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Ericsson buys Telebit

Will buy three more companies this summer

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Nice and slowly does it for Ericsson, the Swedish telecoms giant. It has refrained --so far -- from the urge to merge with a big datanetworking company. While Nortel, Lucent, Alcatel and GEC have stumped up billions for their US data networking businesses, Ericcson is showing far more caution. This week the company dipped into petty cash for the $30 million purchase of 75 per cent of Telebit A/S, a niche, Danish router manufacturer. Ericsson says it will buy three more small Internet infrastructure companies this summer. ®

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