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Avaya Gone; Now What?
By Mark Evans | June 11, 2007
With Avaya snapped up for a cool $8.2-billion by two private equity investors, what’s next for Nortel?
Does it go after another large target such as Juniper, which has a market cap of about $14-billion (a merger of equals or quasi-equals), or does it focus on smaller, more strategic acquisitions in the Wi-Max, VoIP and IP-TV markets?
Regardless of what’s brewing within CEO Mike Zafirovski’s mind these days, some analysts believe Nortel needs to do more than just continue to streamline operations (aka cutting opex). In a Law.com story, Sanford Bernstein analyst Paul Sagawa said “Nortel needs to do something, and anything that would concentrate their efforts in one direction would be a good thing.”
Sagawa said is somewhat bullish both Nortel’s enterprise equipment business but believes it still lacks internal focus to effectively compete against rival such as Cisco, Avaya and Alcatel.
Topics: Analyst Coverage |