Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Cisco Systems, Inc.    CSCO

CISCO SYSTEMS, INC.

(CSCO)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

'No concrete proposition' from U.S. to back Huawei rival Ericsson - Swedish minister

share with twitter share with LinkedIn share with facebook
share via e-mail
02/07/2020 | 09:14am EDT
FILE PHOTO: An Ericsson logo is pictured at Mobile World Congress (MWC) in Shanghai

Sweden's digital minister stressed Ericsson's importance for jobs and technology in Europe on Friday after a U.S. official suggested the United States buy stakes in the telecoms gear maker or Finland's Nokia to counter Huawei's dominance in 5G.

U.S. Attorney General William Barr said in a speech on Thursday that the United States and its allies should consider the highly unusual step of taking a "controlling stake" in one or both of the Nordic rivals to China-based Huawei.

5G networks are at the centre of a dispute over technology between the United States and China as they are expected to host a range of critical functions from driverless vehicles to smart electric grids and military communications, underscoring their importance to national security.

The United States has blacklisted Huawei and is in the midst of a worldwide campaign to convince allies to ban the Chinese giant from their 5G networks, alleging its equipment could be used by Beijing for spying - which Huawei denies.

Barr's comments helped lift shares in the Nordic companies, with Ericsson gaining 4% and Nokia 6% by 1344 GMT.

Sweden's Minister for Energy and Digital Development Anders Ygeman said potential U.S. interest in Ericsson made sense, given that no U.S. company offers a full suite of 5G products, but he stressed the company's importance for Swedish business.

"At the same time there is no concrete proposition from America and if there were such a proposal it would be up to Ericsson shareholders to respond to that," he told Reuters.

"Clearly there is both a strong Swedish and European interest in being able to continue to lead technological development. Ericsson is important both for jobs and business in Sweden but also as a technology leader."

U.S. government investments in public companies are rare except in bailouts to save ailing firms and jobs, and even more so concerning foreign companies.

The two firms have a combined market capitalisation of about $50 billion and it is unclear how the U.S. government would fund investment in the companies or indeed how European regulators and governments would view such a move.

HIGHEST PRIORITY

While the two companies, which together with Huawei dominate the market, declined to comment on Barr's remarks, Ericsson shareholder, activist fund Cevian Capital, said it welcomed the apparent U.S. interest and urged executives at the Swedish company in which it holds an 8.4% stake to explore the potential opportunity.

"A U.S. interest in Ericsson is clearly positive for Sweden, the company and the shareholders," Cevian Capital managing partner Christer Gardell told Reuters in emailed comments.

"A potential deal would have to be based on a completely different valuation level than today's ridiculous share price for Ericsson," Gardell added. "The board and management need to drive and handle this question with the highest priority."

At the World Economic Forum in Davos in January, U.S. President Donald Trump had a dinner with executives from 25 multinational companies and organizations https://bit.ly/2UEUtmi, including the CEOs of Ericsson and Nokia, with talks touching on issues such as the 5G networks rollouts in the United States.

The head of Sweden's shareholders' association, Aktiespararna, said there were likely to be simpler and cheaper ways for the United States to tap into Ericsson's expertise and questioned the wisdom of making clear its interest.

"If the interest in Ericsson is serious it is not the best strategy to spread rumours about it and in that way raise the price of the share, making the company more expensive," Aktiespararna CEO Joacim Olsson said.

Investment firm Investor AB, the biggest owner by voting rights in Ericsson, declined to comment, as did the second-biggest owner by votes, Industrivarden.

Barr said in his speech at a conference on Chinese economic espionage that a move to secure a controlling interest in Huawei's main rivals could take place "either directly or through a consortium of private American and allied companies".

Over the past decade, speculation has circulated among investors and media concerning potential interest from U.S. technology giant Cisco's in a tie-up with Ericsson, although a concrete offer has never materialised.

President Donald Trump signed an executive order last year barring U.S. companies from using telecommunications equipment made by companies posing a national security risk and he has pressed nations not to grant Huawei access to 5G networks.

Britain in late January still granted Huawei a limited role in the country's 5G mobile network, and the EU followed its example by allowing members to decide what part Huawei can play in its 5G networks.

(Reporting by Johannes Hellstrom; additional reporting by Anna Ringstrom and Simon Johnson in Stockholm, and Mark Hosenball and David Brunnstrom in Washington DC; writing by Niklas Pollard; editing by David Evans and Louise Heavens)

By Johannes Hellstrom and Simon Johnson

Stocks mentioned in the article
ChangeLast1st jan.
CARDINAL HEALTH, INC. -1.23% 46.705 Delayed Quote.-5.22%
CARDLYTICS, INC. -1.36% 31.84 Delayed Quote.-48.35%
CISCO SYSTEMS, INC. 2.13% 38.795 Delayed Quote.-20.08%
ERICSSON AB 0.66% 79.28 Delayed Quote.-3.29%
INDUSTRIVÄRDEN 0.94% 193.9 Delayed Quote.-17.20%
INVESTOR AB -0.95% 436.1 Delayed Quote.-13.58%
METSO OYJ 1.08% 20.52 Delayed Quote.-42.10%
MM2 ASIA LTD. -10.95% 0.122 End-of-day quote.-10.29%
NOKIA OYJ 1.38% 2.7925 Delayed Quote.-16.29%
NORDIC GROUP LIMITED -4.44% 0.215 End-of-day quote.0.00%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on CISCO SYSTEMS, INC.
04/02CISCO SYSTEMS, INC., : Ex-dividend day for
FA
03/31CISCO : From Digital Conferences to Work-From-Home Cisco Collaboration Has Got Y..
PU
03/31CISCO : Bank of America Securities and Cisco to Host a Tech Talk on Cisco's Tele..
PR
03/25U.S. investors shop for consumer stocks in anticipation of stimulus bill
RE
03/13Next UPS CEO Carol Tomé Steps Down From Verizon, Cisco Boards
DJ
03/10CISCO : Airtel Collaborates With Cisco to Launch India's First Automated Etherne..
AQ
03/10CISCO : New Converged SDN Transport Solution by Cisco Enables PLDT to Unleash th..
AQ
03/09CISCO : Raymond James and Cisco to Host a Tech Talk on Cisco's Optical Business
AQ
03/08Lessons From the Dot-Com Bust -- Journal Report
DJ
03/06CISCO : Raymond James and Cisco to Host a Tech Talk on Cisco's Optical Business
PR
More news
Financials (USD)
Sales 2020 49 990 M
EBIT 2020 16 585 M
Net income 2020 11 266 M
Finance 2020 13 948 M
Yield 2020 3,59%
P/E ratio 2020 15,0x
P/E ratio 2021 14,1x
EV / Sales2020 3,06x
EV / Sales2021 2,87x
Capitalization 167 B
Chart CISCO SYSTEMS, INC.
Duration : Period :
Cisco Systems, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends CISCO SYSTEMS, INC.
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 48,92  $
Last Close Price 39,31  $
Spread / Highest target 65,4%
Spread / Average Target 24,4%
Spread / Lowest Target 1,76%
EPS Revisions
Managers
NameTitle
Charles H. Robbins Chairman & Chief Executive Officer
Tiang Yew Tan Senior Vice President-Operations & Digital
Kelly A. Kramer Chief Financial Officer & Executive Vice President
Chuck Churchill Director-IT
Roderick C. McGeary Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
CISCO SYSTEMS, INC.-20.08%166 709
FOXCONN INDUSTRIAL INTERNET CO., LTD.-0.60%37 035
ERICSSON AB-3.29%27 042
ZTE CORPORATION-1.61%25 633
MOTOROLA SOLUTIONS, INC.-21.75%22 673
NOKIA OYJ-16.29%17 724