Two more in fray for Nortel's enterprise business
05 September 2009
Bankrupt Canadian telecom firm Nortel, which is selling its businesses to pay off creditors, is reported to have received two more bids for its enterprise unit, its second major sale, slated for Friday next.
While US-based Avaya Inc has offered to acquire the 124-year-old Canadian firm for $475 million, two more bidders are reported to have submitted offers before the deadline for fresh bids expired at noon yesterday.
Siemens Enterprise Communications of Germany and New York-based private equity firm MatlinPatterson Global Advisers LLC are the likely new bidders, according to industry watchers.
Nortel's enterprise unit that makes network equipment like routers, IP phones, switches and other security products, for large corporations will be sold under court supervision on Friday.
Avaya, based in New Jersey, US, submitted an initial bid on 20 July, proposing to buy Nortel's enterprise unit for $475 million, but with several strings attached.
Nortel has been operating under bankruptcy protection since January this year, after suffering losses of $5 billion last year.
Nortel sold its next-generation wireless business to Sweden's Ericsson for $1.13 billion, on 28 July, under a court-supervised auction.