Shares of Tellabs surged Monday, after a financial news Web site reported the U.S. telecommunications equipment maker was entertaining a $7 billion bid by a joint venture of Nokia and Siemens.
TheStreet.com said Nokia Siemens Networks was offering about $16 to $17 per share for Tellabs, citing a source familiar with the deal.
That would be a 35 percent to 43 percent premium to Tellabs' closing price of $11.85 on Friday, trading on Nasdaq. The stock, frequently the target of merger speculation, rose to $14.11 in premarket trade.
An official from Tellabs, whose equipment is used to transmit data, video, and voice signals, was not available for comment. A Nokia Siemens spokesman said the company would not comment on market rumors.
J.P. Morgan analyst Ehud Gelblum said merger talks are likely, given Tellabs' previous comments that it was examining a variety of strategic alternatives, although he said the reported premium was "robust and perhaps implausible."