Neither side was prepared to comment on the reported deal, but if the move it more than stock market rumor, it is likely to be revealed when Tellabs reveals its financial report this morning.
The logic of the deal, reported by TheStreet.com citing a source close to the deal, is that it would provide a substantial base in the US to the 50-50 joint venture between Nokia and Siemens.
Tellabs had $2bn of revenue in 2006 but the company has been under a shadow as the wave of mergers among US carriers has created fewer, if larger deals, for the equipment vendors.
