WRAL Tech Wire

Report: Nokia Siemens has eye on Nortel optical unit

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RESEARCH TRIANGLE PARK, N.C. — A day after Nokia Siemens Networks announced it was going on a worldwide cost-cutting mission, The Wall Street Journal said Wednesday that the joint venture is considering making a bid for Nortel Networks Corp.'s (NRTLQ) optical-network unit.

The paper cited an unnamed person familiar with the bankruptcy proceedings.

Nokia Siemens, however, is just one of several companies eyeing the business, according to the source. Last month, Ciena Corp. (CIEN) planted its flag with a $510 million "stalking horse bid" for the assets, which put another one of bankrupt Nortel's businesses in play.

Under the stalking horse deal--common with companies under bankruptcy protection--Ciena was chosen out of a blind pool of bidders to set a benchmark offer for the business.

Nortel's Metro Ethernet Networks unit specializes in equipment to long-distance networks.

Tuesday, Nokia Siemens announced that it will undertake an effort to trim 500 million euros from its expenses and may lay off up to 9 percent of its staff worldwide. It gave no specifics about where the reductions would occur, but it also said it would continue to look at acquisitions to expand its business.

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