Ciena in talks to buy Nortel optical, Ethernet assets

 

Network vendor Ciena has confirmed it is interested in acquiring Nortel's Metro Ethernet Networks division.
 
Ciena stated it was in “advanced discussions” to acquire substantially all the optical networking and carrier Ethernet assets of the unit, but did not provide financial details.
 
But due to US and Canadian bankruptcy law any arrangements the companies make will trigger a competitive bidding process, with Ciena's offer serving as the stalking horse bid, the company said.
 
Ciena is one of the largest suppliers of fiber-optics gear to telecom companies, and collected revenue of $164.8 million in the quarter ending in July.
 
But the company posted a $4.8 million net loss, and warned that it expects earnings to be flat in the current quarter.
 
Nortel declared bankruptcy in January, and has since sold its CDMA assets and its enterprise unit.
 
Last month, the company launched a fire sale for its packet core business. Last week it announced an auction for its GSM/GSM-R business.

 

 

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