Is Microsoft preparing an iPhone version of its Office Suite?

According to Eweek, quoting Stephen Elop, director of Microsoft Professional Division, Microsoft might be offering in the future an Office Suite dedicated to the iPhone. IT will of course be a reduced version with less features, but one would be able to edit files.
It is rather amazing how Microsoft is able to close its eyes on past or on-going conflicts or fights with Apple when there is an opportunity to get market share on a new growing market, as they were not able to create it. Such suite will most likely be rather expensive and not be free or only cost the usual few USD as most of iPhone apps.