One at a time, please: Nortel delays one auction because of another
Nortel
On The Web
- Nortel
- Nokia Siemens Networks
- One Equity Partners
- Local Tech Wire at Twitter – sign up today for latest news alerts
Site Search
Get the latest news alerts: Follow LTW at Twitter
Local Tech Wire
RESEARCH TRIANGLE PARK, N.C. — Wanting to handle only one auction at a time, Nortel (OTC:NRTLQ) has delayed bidding on its GSM/GSM-R business so it can concentrate on offers Friday for the Optical Networking and Carrier Ethernet operations.
Nortel did not give a new date for the GSM auction, saying it would have more to offer next week.
Friday is when Ciena and at least one other bidder, reportedly a team of Nokia Siemens Networks and One Equity Partners, go after the Metro Ethernet Networks division.
Nortel still employs about 1,700 people in RTP.
Ciena's bid, variously valued between $514 million and $532 million, was approved by bankruptcy courts in October as a starting point. Nortel delayed the auction from Wednesday to until Friday because the other offer appeared.
Reuters and Bloomberg reported this week that Nokia Siemens Networks teamed up with investment adviser One Equity Capital for the new offer. Nortel was mum on who or how many companies had entered the action.
Maryland-based Ciena (Nasdaq: CIEN) has offered to hire most of the 2,000 employees in the network operations.
Nortel declared bankruptcy in January. The Optical Networking group has recorded 52 “wins” this year for its 40-gigabit networking solution and is continuing field trials of its 100-gigabit solution that is planned for release later this year. However, sales at Metro Ethernet Networks fell 26 percent to $295 million in the third quarter from a year earlier, Nortel reported on Nov. 16.
Nokia Siemens Networks is a partnership formed by the two European companies.
One Equity Partners is an eight-year-old money manager that manages $8 billion of investments and commitments for JPMorgan Chase & Co. in direct private equity transactions, it says. "Partnering with management, OEP invests in transactions that initiate strategic and operational changes in businesses to create long-term value," One Equity says.
The company's portfolio consists of hospital companies, several firms that offer business management services and some travel companies.
Nortel will still require court approvals once a winner is determined.
Copyright 2010 Local Tech Wire. All rights reserved.
Featured
Hot Off The Wire
- Hot Off the Wire – Google slashes Nexus One termination fee; MySpace Music tunes up audio ads; Barry Diller’s IAC beats Street
- Hot Off the Wire – Man convicted in first economic espionage case; iPhone market share grows; Electronic Arts shares falter after revenue forecast; Phone company wants to charge Google
- FairPoint looks to cut debt by two thirds with bankruptcy plan
E-mail Preferences
The Skinny
- Gears of War 3 coming? EA discloses Epic game for 2011
- Nagoya University bridges East, West with Nu Tech event
- E-mail services provider iContact investigating a hack attack
- Cyberespionage? Cyberslueths disclose Lenovo’s 2010 ‘roadmap’
- Tech recovery is at hand, analysts tells N.C. IT execs
- Believe it - Triangle region lands record $1.9B in business projects
- Epic Games’ heroes take their guns to a new world – ‘Lost Planet 2’
- IPO rewards: Motricity CEO gets a $75,000 raise in new contract
- IT recession over? Spending will rebound, analysis firm says
- Google vs. the Dragon – War over words could ignite into flames