Despite recent reports of merger discussions, Tellabs is unlikely to be acquired by another telecom equipment vendor any time soon, according to UBS Investment Research.

“While an acquisition of [Tellabs] is possible in the longer term, we believe it is less likely in the short term,” UBS said in a research note issued today.

Though UBS analysts had previously identified Nortel Networks and Nokia Siemens Networks as likely potential acquirers of Tellabs, they now say weak second-quarter results from both suitors have made large purchases riskier.

“Following a weak 2Q, [Nokia Siemens] is likely to focus on integrating the two companies rather than large M&A,” UBS said. “[Nortel] also had a weak 2Q, resulting in a sagging stock price, while a weak credit environment would make a debt offering for M&A much more expensive.”

Speaking at an investor conference last week, Tellabs Chief Executive Officer Krish Prabhu was again asked if ongoing merger negotiations were preventing the company from making a decision about how to use its available cash. Prabhu declined to answer.