Battle for Nortel heats up!!
August 28, 2009
Tags: Comment, Communications, News, Telecommunications
Avaya has bid $475m for their enterprise division. This stalking horse bid was designed to flush out further interest. Siemens is obviously interested through its complicated ownership set up. Private equity firm Gores Group (majority owner of Siemens Enterprise Communications and Enterasys Networks) has formed a joint venture with Siemens AG, called Enterprise Network Holdings. Canadian and US law allows “Qualified Bidders” to outbid Avaya. The result, as I understand will be announced in September.
It is interesting to note that both bidders are interested in Nortel’s customer base – not surprisingly as it is huge! Neither seem interested in their technology as they both have their own technology in bucket loads.
The mobile/wireless unit looks as though it may be sold to Nokia Siemens Networks for $650m. I wonder if this will help pave the way for the Siemens deal.