Stalking horse Ciena wins Nortel MEN auction

by Guest on November 24, 2009

nortel A few weeks ago we discussed the developing race to acquire Nortel Networks Metro Ethernet Networks (MEN).  It was a busy week of auctions for Nortel, with one auction being postponed, and the other being prolonged.

Finally after months, ok- maybe weeks,  of speculation, Ciena won the auction with a bid of $769 million consisting of $530 million in cash and another $239 million in interest-earning convertible notes.

The competing bidder in the auction was Nokia Siemens, who felt that their “final offer represented fair value for the assets, and further bidding could not be financially justified.”

So, now that Ciena has won the auction, what happens next?

The first step will be to offer positions to about 2,000 of the MEN staff, and then receive final approval from the bankruptcy courts in US and Canada, scheduled for December 2.

As one commenter suggested, Ciena is now tasked with how to decide on which products from the two groups to move forward with.  As direct competitors, the two have a similar product base that will require strategic planning to ensure that Ciena is able to make the most of this expensive acquisition.

Now that the race is run and Ciena has been crowned victorious, time will tell if this was the right decision.

Written by: Jason Finnerty. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Identi.ca, or Friendfeed

{ 2 trackbacks }

Will Nortel bring down Ciena? — TheTelecomBlog.com
December 11, 2009 at 1:41 am
Avaya Nortel, Nortel Avaya. Which one is it ? And what happens to your old Nortel equipment ? — TheTelecomBlog.com
December 31, 2009 at 6:52 am

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