LONDON, Oct. 10 (UPI) -- Sweden's Telefon AB LM Ericsson is about to buy Marconi Corp. PLC, its financially ailing British rival, for $2.7 billion.
Although neither company has confirmed talks, numerous media agencies have reported such news since Sunday when Britain's Financial Mail broke the story.
A definitive agreement for Ericsson to pay $2.7 billion could be announced by next week, the Financial Mail reported.
Ericsson is understood to be interested in retaining 80 percent of Marconi, spinning off the remainder.
Four investment banks are understood to be brokering the deal, Morgan Stanley, JP Morgan and Lazard advising Marconi, with Enskilda acting for Ericsson.
China's Huawei Technology, which until recently was seen as the leading candidate to buy Marconi, cooled to the idea because of Marconi's pension obligations.
