STOCKS NEWS EUROPE-Ericsson down as rivals win Telenor deal

Shares in Ericsson <ERICb.ST>, the world's biggest mobile networks maker, fall 3.4 percent after rivals Huawei [HWT.UL] and Starent Networks <STAR.O> have won an order to replace Telenor's <TEL.OL> entire mobile infrastructure in Norway.

The network was first built by Ericsson and Nokia Siemens Networks [NSN.UL]. Analysts says the Huawei deal is weighing on Ericsson along with overall equity market weakness.

"The Huawei deal is significant from a signalling point of view", says one London-based analyst who declines to be named.

Thomas Langer, analyst at WestLB, says he sees the Telenor announcement as one explanation to the share reaction. "But the main theme is general market correction," he says.

Telenor shares are down 0.2 percent.

For a full story on the Huawei deal, double click [ID:nL5381188]

Reuters Messaging rm://victoria.klesty.reuters.com@reuters.net

rm://jens.hansegard.reuters.coms@reuters.net