Zyxel denies takeover offers

Vendor dismisses Cisco and Alcatel rumours

Networking vendor Zyxel has dismissed rumours that it has received separate takeover offers from both Cisco and Alcatel, and has revealed it will be restructuring its UK distribution network in 2007.

The Taiwan-based manufacturer has appointed Micro-P as its fifth UK distributor. Broadliners Northamber and Computer 2000 (C2000), and specialists Comtech and Electronic Frontier complete the line-up.

But Lee Marsden, Zyxel’s UK sales director, told CRN the vendor will “rationalise” distribution numbers within the next few months because it wants to work only with focused partners. “We’re looking at everyone to see how they perform and will take it from there,” he said.

The move comes amid speculation that both Cisco and Alcatel have tabled offers for all or part of Zyxel’s business. Marsden, however, insisted there was no truth behind the story. “Rumours like these tend to happen when a company is doing well,” he said. “Zyxel is going through an aggressive growth phase. Maybe we are making the competition nervous.”

Colin McCann, general manager at Electronic Frontier, said: “Zyxel is a growing and profitable organisation. It is not in a position where it would need to accept offers.”

Sam Purnell, volume networking sales specialist at C2000, said: “Zyxel has been targeting the SME space recently so I don’t see why Cisco would want to put it up against Linksys.”

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