Reg comments

Moto and Nortel talk wireless merger

Will you be my valentine enormous wireless infrastructure partner?

Nortel and Motorola are reportedly in talks to merge their wireless infrastructure businesses in a bid to cut costs.

A joint venture has been under discussion for about a month, the Wall Street Journal said today, citing its standard boardroom-via-PR whispers.

A deal would not be much of a shocker for the wireless industry. Both Moto and Nortel are on the ropes with tumbling stock, and their big infrastructure rivals have consolidated to become Nokia Siemens Networks and Alcatel-Lucent.

Such big mergers are fraught with difficulty, however. Alcatel-Lucent is market valued at $20bn less than the separate companies pre-merger.

Neither Moto nor Nortel has commented officially. The reported talks are separate to investor pressure on Moto to offload its ailing handset division. ®

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