With three days left before bidding closes for Nortel’s metro Ethernet network business, the big question is whether anyone else is going to step up to the plate.
In a research report issued today, Jefferies & Co. analyst George Notter suggests other bidders could include Ericsson and Nokia Siemens Networks, which lost out to Ericsson for Nortel’s CDMA wireless business and LTE R&D unit.
Ciena made a “stalking horse” bid of $511-million ($350-million in cash and 10 million shares) but some analysts believe MEN could fetch as much as $800-million.
Ciena buys MEN.
Ciena stock tanks.
Ciena reports quarterly losses.
Ciena CEO gets turfed.
Morin gets promoted.
Major restructuring turfing Ciena people to rule to the roost.
Ciena still tanks even faster.
Ciena gets bought for 500 million.
I hope not as Ciena does things better today than all the crap, egos and bad execution out of MEN.
NTlegacy
Sad to see it all. Why would Ericsson buy MEN? To destroy, like they did with Marconi? Why would NSN buy MEN? To make true the insane Sue's dreams to acquire Nortel? They have their own portfolio and market on MEN .Let's look closer. This deal doesn't make sense to any of them. Everybody knows NSN is not on good financial situation, they have no North, doesn't even know what is their own core. On the other side, Ericsson, is a Titan that buys just to destroy.
The only one who makes sense this deal (for those considering in to the bid) is Ciena. Their situation is dramatic: Buying Nortel's MEN is their golden opportunity to remain as Ciena. If they fail on do it, they will be acquired by someone else. Nowadays, alone, they don't have market share to be a standalone company.
protosphere
I can just see it now, Friday, Nortel will come out screaming what a wonderful deal this is for stakeholders including creditors and employees. More glee...
They better tie the Nortel PR people's hands from hyping up another storm before they destroy this company's credibility too or reflect desperation like Avaya. No better time to buy, become a short term partner,etc...step right up, it walks it talks it crawls on its belly like a reptile ....bought with some soon to be rapidly decline paper to boot.
Like i keep reiterating, what is losing money worth? Is it any wonder CIEN will tank.
freqmgr
What credibility is there to destroy? Mike Z and his minions completed that action. Where do you see Nortel still being credible?
protosphere
"the recent spike in CIEN shares seems to reflect a belief that the company will be out-bid for the Nortel unit" "Notter thinks a winning bid from anyone other Ciena would likely drive up CIEN shares - and that if they win, the stock is likely to sink."
"At the moment, the Street seems to betting that Ciena will lose; in other words, the stock is trading higher."
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The street is wrong,. it is always wrong, we are always right =)
Given they already tried to dump it to no avail before bankruptcy, it may be a safe bet to short CIEN the second they win the bid. Sounds like a quick buck for the patient investor given it rose from July at around 9 bucks to peaking at near 17 not too long ago.
Nortel is plagued by tanking stocks or companies having anything to do with it.
Watch Avaya with happy Hack and the crew. Even Ericsson is better buffered and seeking the same EDC $300M in welfare that was to be extended to Noika had they won. Just because others were outbid, doesn't mean MENs will be, it is a false empiricism they are betting on. =) Watch, I told you MENs wouldn't be sold way back, now CIEN will get it without an all cash deal Nortel sought.
I may be wrong but this is what I believe.
flummux
The bids are due today. I have not seen anything yet (including this Barron's link) which tells when the revised auction date will be.
Who’s Else Wants MEN
With three days left before bidding closes for Nortel’s metro Ethernet network business, the big question is whether anyone else is going to step up to the plate.
In a research report issued today, Jefferies & Co. analyst George Notter suggests other bidders could include Ericsson and Nokia Siemens Networks, which lost out to Ericsson for Nortel’s CDMA wireless business and LTE R&D unit.
Ciena made a “stalking horse” bid of $511-million ($350-million in cash and 10 million shares) but some analysts believe MEN could fetch as much as $800-million.
Source: Barron’s Tech Trader Daily.