, which provides data communications services to large companies, is in serious discussions to acquire Dutch rival
(ENT - Get Report)
, according to
The Wall Street Journal
, citing people familiar with the matter. The
Web site first reported the revived talks, which have been on and off all summer.
said terms couldn't be determined, but Equant has a market capitalization of about $9 billion. Also, the two companies are still discussing financial aspects of the deal such as whether this will be a cash or stock transaction. Equant, which owns an airline reservation system that offers phone and data services, has been on the market for some time and is being encouraged by
, a consortium of the world's biggest airlines, which wants to get rid of its 33% stake in Equant. Earlier this year, the company was in talks with
, but negotiations fell through when terms of the approximately $10 billion deal couldn't be agreed upon. Also, about a year ago
quit talks amid concerns of Equant's huge price tag.
For Infonet, the acquisition could realize huge cost savings for the company, which has a similar network, as well as additional customers.