Nortel, citing 'ongoing discussions,' postpones optical, Ethernet business auction
Nortel delays auction
On The Web
Site Search
Get the latest news alerts: Follow LTW at Twitter.
Local Tech Wire
RESEARCH TRIANGLE PARK, N.C. – Nortel Networks postponed the auction of its optical networking and Ethernet businesses that had been set for Friday.
In a statement, the company, which is in bankruptcy, said the postponement decision was made “in light of ongoing discussions with interested parties.”
“Qualified bidders are now required to submit offers by November 17, 2009,” Nortel said. “The Company expects to provide a further update on the auction process and sale of these businesses next week.”
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 had extended a Monday deadline for more offers to be made.
Nokia Siemens is among other potential bidders, Bloomberg reported.
Ciena’s bid, which 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.
Also on Friday, Ericsson said it had closed on its $1.1 billion acquisition of key Nortel wireless assets. Some 2,500 Nortel employees will go to work for Ericsson as part of the deal.
Ericsson won an auction in July for technology based on CDMA, or code division multiple access which is a rival standard to the dominant cellular standard GSM, or global system for mobile, and LTE, or long-term evolution, a next-generation wireless network technology that promises to be much faster.
"Separately, our two companies played leading roles in freeing voice telephony from its fixed limitations," said Hans Vestberg, Ericsson's incoming president and chief executive officer, in a statement. "Together, we will do the same for broadband - make it mobile and bring the benefits of high-speed data connectivity to the majority of the world's population.”
Copyright 2012 WRAL Tech Wire. All rights reserved.
Featured
Hot Off The Wire
- Red Hat's new Fedora lead; Cree LED breakthrough; Google, Cisco top 'green' list; Oracle rejects SAP settlement; Yahoo board shakeup
- Will Cisco report progress in its turnaround efforts?
- Cisco server fire threat; Lenovo Android upgrade; cloud startup vs. Cisco; Epic's Blesinski to host awards; Google 'Solve for X'
E-mail Preferences
The Skinny
- Groundwork Labs refocuses mission as Triangle Startup Factory nears launch
- Epic Games' Tim Sweeney reaps arts Hall of Fame honor today
- Charlotte's startup efforts pick up steam as more data pours in
- 'Battle in Bay 7' returns - Are you techies ready for some basketball?
- Inside RTP's new angel fund: Founders meeting 'significant' need
- Who won 'Social Bowl'? Super Bowl ads paying fans to play
- RTP broadband firm Overture, minus two top execs, launches new look
- Will RTP-based ChannelAdvisor go public? They're thinking
- What brands are winning Super Bowl hype? Two Durham firms to find out
- In Super Bowl of social media, Patriots win, Triangle firm says