Cisco amid three bidders for Nortel's Ethernet biz
Written on 1:08 PM by ooe
Cisco amid three bidders for Nortel's Ethernet biz
Nortel is reportedly absorbing bids from three companies, including Cisco, for its Metro Ethernet Networks business unit.
According to a address in the Canadian civic bi-weekly Globe and Mail, companies best acceptable to bid on the US$2 billion business accommodate Cisco, Huawei, Ericsson and Nokia Siemens. The commodity does not say which of those companies is not bidding.
Nortel beforehand this year said it would seek buyers for MEN in an accomplishment to accession banknote to armamentarium added businesses the aggregation considers added strategic. Nortel is accepting agitation airy afterwards an accounting artifice aspersion in 2004, circuitous by the accepted black all-around economy.
Various analysts appraisal that Nortel could back amid $1 billion and $2 billion for MEN, admitting the accepted bread-and-butter altitude ability lower that value.
The Globe and Mail adventure additionally says Nortel is attractive to advertise added assets instead of filing for bankruptcy. One of them ability be the company's Carrier Networks business, Nortel's bedrock.
Selling off Carrier Networks would end the century-old accord amid Nortel and the telecommunications industry, the adventure notes. Nortel is North America's better supplier of blast equipment.
Nortel would again be larboard with its Enterprise and Services businesses, which accommodate Ethernet switches, routers and unified communications software. Enterprise is about $2.5 billion annually to Nortel, while Services is a $2 billion operation.
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