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Ciena beats Nokia to win Nortel bid
By siliconindia
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Monday, 23 November 2009, 19:40 IST |
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Toronto: Ciena will buy the optical networking and carrier ethernet business of bankrupt Nortel for $769 million, after trumping Nokia Siemens Networks in a three-day auction. Nokia Siemens Networks, which failed to acquire Nortel's next-generation wireless business in July, had once again entered the bidding process - jointly with the equity firm Equity Partners.
Toronto-based Nortel has been selling its businesses bit by bit to pay off its creditors after it sought and got bankruptcy protection in the U.S. and Canada in January after last year's huge losses, reports Reuters.
The current deal will more than double the turnover of U.S. network equipment maker Ciena, raising market worries over integration of operations, and over increase of its debt load. Ciena's winning offer consists of $530 million in cash and $239 million in convertible notes, one of the sources said, speaking on condition of anonymity since details of the auction have not been made public.