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NSN ‘may join race’ for Nortel unit
05 November 2009
Nokia Siemens Networks has been named as a possible bidder for one of the last remaining chunks of Nortel, the optical network division for which Ciena has already put in a $510 million offer
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[Nortel]
[Nokia Siemens Networks]
[NSN]
[Ciena]
[optica]
[Ericsson]
[Avaya]
Comment: NSN seems an unlikely candidate for buying a slice of Nortel, though the optical networking unit would be a useful addition to its portfolio — mainly because NSN is undergoing the second stage of reorganisation following the merger that created it, is likely to lay off staff and is shifting its focus to services, not equipment. Time will tell.
Nokia Siemens Networks is weighing a bid for the optical network division of Nortel Networks. An offer would rival Ciena, which has made a $510 million stalking horse bid for the assets.
Under the deal, all the assets of Nortel’s metro ethernet businesses, including long-haul optical transport gear, switching technology and network management software are up for sale.
NSN’s plans to bid for the assets are uncertain as they will have to exceed Ciena’s offer of $390 million in cash and 10 million shares. Ciena is also planning to appoint up to 2,000 Nortel workers if the deal is a success.
Bankrupt Nortel is seeking buyers for separate sections of the whole company. Avaya agreed to pay $915 million for the division of the telecom operator that sells communications gear to corporations, while Ericsson bought Nortel’s wireless networks business for $1.13 billion. GTB
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