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Ciena interested in MEN?
Ciena and Nortel often share column inches, but usually they’re mentioned in the same breath because both are struggling in the economic downturn.
But now a report on Bloomberg suggests that Ciena is sniffing around Nortel’s Metro Ethernet Networks (MEN) unit, which was originally put up for sale last September, then taken off the table last month. The suggested price is $300 million.
This latest development follows a report in the Wall St. Journal that Nortel is considering the sale of two of its largest business units.
Nokia Siemens Networks is said to be interested in acquiring Nortel’s wireless-equipment business, while a string of firms, including Avaya, Siemens Enterprise Networks and private equity firm Gores Group, have been in talks to acquires Nortel’s enterprise division, the report says.
The report also suggests that Nortel may be worth more if it is split up and sold for parts &mdash giving the Canadian vendor a good reason to reconsider its decision about the MEN division. Selling the wireless-equipment business, which generate a large part of the company’s revenues, would also complicate any effort to emerge as a standalone company.
Nortel filed for credit protection on January 14, a process that requires the company’s affairs be resolved in a way that delivers the maximum value to bondholders and others to whom it owes money. So far, Nortel has agreed to sell the Layer 4-7 business, comprising the products of the former Alteon Websystems, to Israeli firm Radware for a mere $17.65 million.
The restructuring process is expected to be completed by May 1st.
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