Orion Securities analyst Duncan Stewart does not believe Nortel’s rumoured interest in buying Force 10 Networks for $550-million will materialize. “We do not think this deal is likely,” he said in a research note. “Nortel just has not got enough discretionary cash (even after selling [the] UMTS access [business to Alcatel]), they do not need more dilution (and we doubt Force10’s VCs would want Nortel paper) and this does not seem like a great fit with the key target technologies that Mike Z has been articulating”. Stewart said Force 10’s customers include Facebook, Baidu.com, Vonage, CERN, F5 and Samsung.
More on Force 10
Orion Securities analyst Duncan Stewart does not believe Nortel’s rumoured interest in buying Force 10 Networks for $550-million will materialize. “We do not think this deal is likely,” he said in a research note. “Nortel just has not got enough discretionary cash (even after selling [the] UMTS access [business to Alcatel]), they do not need more dilution (and we doubt Force10’s VCs would want Nortel paper) and this does not seem like a great fit with the key target technologies that Mike Z has been articulating”. Stewart said Force 10’s customers include Facebook, Baidu.com, Vonage, CERN, F5 and Samsung.