"We don't exclude anything but right now we are focussing on targeting small- and medium-sized companies," Ericsson spokeswoman Pia Gideon told Reuters.

Ericsson chief executive Sven-Christer Nilsson said in an interview with The Wall Street Journal published on Thursday that Ericsson intended to become a leader in the new telecom world.

"So I don't exclude the possibility of a merger, focussing on smaller, discreet acquisitions. We're working rapidly to stay on top of things,'' Nilsson was quoted as saying.

Ericsson announced on Wednesday it acquired Advanced Computer Communication (ACC), a California-based vendor of remote access technology, for about $285 million cash.

Ericsson said it saw excellent synergies between ACC's portfolio of remote access products and its own networking solutions and future development plans.

"This is apearl of a company. I gave my blessing to the (acquisition) push when I got this job, but it's just the beginning. We're not going to rush things, but more is coming," Nilsson told the newspaper.

Ericsson is due to hold a managerial meeting in early October to discuss structural changes.

The group is thought to be considering moving its headquarters abroad. Ericsson announced in August it had bought an office building in central London, an investment of about one billion Swedish crowns ($126 million).

"We see the headquarters question as an outcome of the organisational review," Gideon said. She said the question would be put on the table at the October meeting but declined to say if a final decision would be taken.

Analysts said Ericsson moving outside Sweden would be embarrassing for Sweden's ruling Social Democrats, which face a general election on September 20. Last year the company posted a pre-tax profit of 17.22 billion crowns.