Huawei, Marconi: No comment on acquisition rumor

Telecommunications equipment vendors Huawei Technologies Co. Ltd. and Marconi Corp. PLC declined to comment on a published report Monday that they have been in talks that could lead to an acquisition by the Chinese company.

China's Huawei and Marconi of the U.K. already have a partnership to distribute each other's products. They have held exploratory talks about closer ties that could lead to a possible acquisition of Marconi, the U.K.'s Financial Times reported on Monday.

Marconi said in May that it was exploring its "strategic options" for maximizing shareholder value. It made the announcement after losing out on a big contract to provide equipment for British Telecommunications PLC's 21st Century Network project.

A Marconi spokesman on Monday declined to comment on talks with any specific companies, but said Marconi continues to explore its options.

"These options include, amongst a range of alternatives, discussions with third parties about potential business combinations," the company said in a statement following the Financial Times report. "The discussions are at a preliminary stage and there can be no assurance that an offer will ultimately take place."

A Huawei representative also declined to comment.

Sumner Lemon in Shanghai contributed to this report.