Note: The Skinny blog is written by Rick Smith, editor and co-founder of Local Tech Wire and business editor of WRAL.com.
RESEARCH TRIANGLE PARK, N.C. – The battle for optical networking and metro Ethernet business is not over after all.
Nokia Siemens Networks is objecting in bankruptcy court to Nortel’s decision to pick a bid from Maryland-based Ciena as the winner in last month’s auction for the business unit. It says notes offered by Ciena as part of its bid pose “considerable risk” and that an all-cash deal is of more value.
Nokia also said it is willing to raise its offer to $810 million in cash, according to Reuters.
Ciena offered $530 million in cash and another $239 million in convertible notes.
A decision on the auction by bankruptcy courts in the U.S. and Canada is expected Wednesday.
"We can confirm we have notified the representatives of Nortel’s creditors that we are willing to offer $810 million in cash for the optical networking and carrier ethernet assets of Nortel, an increase to our final bid in the auction," Nokia Siemens spokesman Barry French told Reuters.
"Along with our expert advisors, we continue to believe that the convertible notes offered by the competitive bidder carry significant risk and should not be valued the same as cash," he added.
Nokia Siemens and its partner, One Equity Partners, originally offered $770 million.
A Ciena spokeswoman told the Canadian Press that the company was aware of the objection, but declined to comment.
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