NSN bids on Nortel unit with private equity partner

Nokia Siemens Networks and private equity firm One Equity Partners have jointly bid for Nortel Networks’ (OTCBB:NRTLQ) Metro Ethernet business, challenging Ciena’s (NASDAQ:CIEN) bid for those assets in advance of an auction to be held on Friday, Reuters is reporting.

NSN was expected to bid on the assets, which include Nortel’s optical gear, but NSN’s own current reorganization efforts complicated the picture. A joint bid with a partner could give it enough financial backing to overcome that complication, however.

Analysts have predicted that NSN would be able to beat much-smaller Ciena in a bidding war, not just because of its greater capitalization but because it would exact more synergies from such a deal that Ciena would, allowing it to pay a higher price. Ciena offered $521 million in cash and stock, which was originally estimated as slightly less than half of the 2009 revenue from Nortel’s Metro Ethernet unit. But its revenues dropped about 26% from a year earlier in the third quarter.

NSN was outbid for Nortel’s wireless assets this year by rival Ericsson.

Leave a Comment

Acceptable Use Policy

authimage
Enter the word as it is shown in the box above.
If you can't see the word, refresh the page.

Calendar

November 2009
M T W T F S S
« Oct   Dec »
 1
2345678
9101112131415
16171819202122
23242526272829
30  

Your Account

Subscribe

Subscribe to RSS Feed

Subscribe to MyYahoo News Feed

Subscribe to Bloglines

Google Syndication