Nortel may sell networking unit to either Avaya or Siemens, news service says
Nortel Networks may land bids from two competitors for its corporate networks business unit, according to the Bloomberg news service.
Citing “two people close to the situation” as its sources, Bloomberg said Nortel could generate as much as $500 million in the potential bids from Avaya and Siemens Enterprise Communications.
Nortel, which declared bankruptcy in January, recently received court approval to sell another, smaller business unit to Radware.
The sale of some business units could turn out to be a key part of Nortel’s reorganization plan. Or the company could decide not to sell off any further business units.
Bids for the network unit are due this week, Bloomberg noted.
Nortel is apparently auctioning the unit with the help of Lazard Ltd.
“Planning is under way and any decision will be taken in the interest of shareholders,” Nortel spokesman Mohammed Nakhooda told Bloomberg.
Nortel is laying off thousands of workers as part of the bankruptcy. A reorganization plan could be announced next month.
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