Cisco, Samsung Reportedly In Talks About Division Sale, Report Says

Cisco Systems, Inc. CSCO recently approached Samsung Electronics Co Ltd to acquire its network business division.

The Korea Times, citing "a person familiar with the matter," stated that "Samsung was contacted several times by Cisco" but a deal was rejected because the bidding price was "too low." Nevertheless, Cisco is still said to be interested in acquiring the unit.

The source further told The Korea Times that Samsung's network business is attractive given an increased presence in several key markets. Accordingly, Samsung is looking for Cisco to pay more but the U.S.-based company "hopes to spend less."

The publication added that if Cisco were to successfully acquire Samsung's unit, the company could realize a "significantly strong foothold" in Korea, India and Western Europe and the US. These markets are expected to see heavy activity ahead of an eventual 5G rollout.

Finally, Cisco's acquisition could ease investor concerns that its networking business may be "challenged further due to the rise of competitors."

Shares of Cisco were trading nearly flat at $26.62 Friday morning.