Report: Nortel extends deadline for optical network unit bidding
Nortel seeks more bidders
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RESEARCH TRIANGLE PARK, N.C. – Bankrupt Nortel Networks is still seeking bidders for its metro Ethernet and optical networking business as the latest auction for one of its assets nears.
Maryland-based Ciena (Nasdaq: CIEN) is the front-runner with a bid of more than $500 million.
Bloomberg News, citing two unnamed sources, reported Tuesday that Nortel extended a Monday deadline for more offers to be made.
Nokia Siemens is among other potential bidders, Bloomberg reported.
Ciena’s bid, the Washington Business Journal reported Tuesday, has received regulatory approval for its bid that includes some $390 million in cash plus 10 million shares of stock.
Ciena is the “stalking horse” bidder in the process, giving it rights to submit higher bids.
Analyst Ari Bensinger told Bloomberg that Nortel could end up getting $800 million for the optical business group.
“With the economy rebounding there could be more bidders,” Bensinger told Bloomberg. “For Ciena, acquiring the business strengthens its hand and keeps it out of those of a rival.”
Nortel has already sold much of its wireless business to Ericsson and its business phone group to Avaya.
Nortel declared bankruptcy in January.
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