Ciena Goes Higher for MEN

By Mark Evans | Published: November 22, 2009

Ciena has apparently bumped up its offer for Nortel’s optical networking and carrier Ethernet business by about 40% to $714 million.

Reuters reports that Ciena’s new bid is $500 million in cash and $214 million in convertible notes. This compares with the original “stalking horse” offer of $350-million cash and 10 million shares. The offer bidder in the auction is reported to be Nokia Siemens Networks.

The auction started on Friday.

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  • protosphere

    The lone bidder for so long won?
    So much for empirical speculation driving up the stock up thinking they wouldn't. =) The street was wrong yet again <smirk>.

    Watch CIEN stock dive now.

  • Jimbo976

    Who said Ciena won? It doesn't appear to be over yet.

  • protosphere

    Note they talk sales/revenue relative to what other uniots were sold for (for all that matters) and nothing about profits/earnings relative to each unit they will try to tame as Nortel tried.

    Equity One might manage $8B for Morgan but Morgan has 3 trillion in deep pockets, one of the few unaffected by the recent bank meltdown. Why didn't they take it.

    Noika, forget it.

    As for CIEN, they have a billion assets and almost that in debt to ill afford sales neglecting earnings like Nortel pulled.

    Notes are at 6% and will go to 8% if stock plunges as a further heads up. De jas vou all over with anything this touches it seems.

  • protosphere

    They sell rapidly depreciating business units better than they ever could their money losing products, I don't trust them.

    CIEN were idiots on steroids to bid 40% more.
    Of course this sole bidder for so long won. Watch.

    After big business creditors,there still won't be anything left with 28B debt…

    all theatrics… all horsefeathers… only LG and patents left to get bonuses on maximizing value…

    like I said they can fire sell rapidly depreciating business units with rapidly appreciating liabilities better than they ever could sell product… selling anything below cost or buying it at a whopping premium seems to be their contagious forte =)

  • unknownPath

    Look like it is official:
    http://www.nytimes.com/reuters/2009/11/22/busin…

    “Ciena's winning offer consists of $530 million in cash and $239 million in convertible notes”

    this is the opposite of what everyone thought was going to happen. (except for maybe proto, you win again)

  • random123

    Proto has forogtten about CVAS… again.

  • borissss

    Losers of the 2 auctions.Looks like Nortel execs hired NSN to maximize the value :)

  • NTlegacy

    At least, employees will have a clear future right now. It means that unemployed or employed at Ciena, there is a future already scheduled.
    I agree with the joke Borissss did.
    As I said before: Why wait more for the auction? NSN has proven they don't have enough motivation to buy any of Nortel's assets.
    Now, to finalize: God Bless CVAS employees!

  • whopperscan

    Puzzled about Nokia… there is a successful GSM wireless company, making more profit in any week than Nortel made in the last 10 years…. yet their efforts in bidding seem to be half-hearted at best… I wonder what their game really is? They could easily outbid a mob like Ciena if they wanted to, on their own. Without all this secrecy & reluctance, and the mad idea of partnering with some private equity wanker-banker mob. Lol, can you imagine how that might have worked? I don't think they were serious, do you?

  • scalppeeler

    Makes you wonder.
    I don't think they were serious either. Leads you to believe that anyway.
    It does look like a sue spradley scheme to jack up the price for creditors.
    Why the hell were NSN showing any interest dropping out so early.
    Now things are much worse.
    You have Ciena paying more than they thought and they are having
    problems of fheir own and are on shakey ground. Plus you have the stock angle.
    It is going to really tank now since speculation was if they won MEN for anything more than their original bid the stock would dive.
    Will be interesting to see how Ciena are able to fulfill their stalking horse
    agreements. Show me the money?

  • bankrupt_bob

    Methinks this needs an update ;>)

    [quote] CUSTOMER SOLUTIONS

    * 40G/100G Adaptive Optical Engine
    * 4G Mobile Broadband
    * Adaptive All Optical Intelligent Networking Solutions
    * Cable Operator Solutions
    * Cable VoIP Solution
    * CDMA 2000 1xEV-DO
    * CDMA Networks
    * Converged Solutions for Small & Medium Business
    * Customer Contact Solutions
    * Data Center Solution
    * Data Infrastructure Solutions for Cable Operators
    * Data Networking
    * Data Networking for Service Providers
    * Data Networking Solutions for Small & Medium Business
    * EDGE (Enhanced Data Rates for GSM Evolution)
    * Education Solutions
    * E-Government solution
    * Enterprise Security Solutions
    * Expert Anywhere Contact Solution
    * Federal Government Solutions
    * Financial Services Solutions
    * Fixed Mobile Convergence
    * Government Solutions
    * GSM Networks
    * GSM-R Networks
    * GSM-UMTS Next Generation Voice Core
    * Healthcare Solutions
    * Homeland Security Solutions
    * Hospitality Solutions
    * Industry Solutions
    * IP Multimedia Subsystem (IMS) Solution
    * IP Telephony
    * IPTV Solutions
    * LAN Networking Solutions
    * Large Enterprise Solutions
    * Long Term Evolution
    * Metro Ethernet Mobile Backhaul Solutions
    * Metro Ethernet Networking Solutions
    * Mobility Solutions for Large Enterprise
    * Municipal Wireless
    * Optical Enterprise Solutions
    * Optical Solutions for Cable Operators
    * Optical Solutions for Service Providers
    * Provider Backbone Bridges (PBB) and Provider Backbone Transport (PBT)
    * Secure Network Access Solution
    * Service Provider Solutions
    * Service-Oriented Architecture (SOA)
    * Small & Medium Business Solutions
    * State, Local and Provincial Government
    * Storage Networking Solutions
    * Telephony Solutions for Small & Medium Business
    * Unified Communications
    * Unified Communications Campus
    * Unified Communications for Small and Medium Business
    * Virtual Private Networking Solutions
    * VoIP Infrastructure Solutions
    * Wireless Mesh Network Solution
    * Wireless Operator Solutions

    [endquote]

    http://www.nortel.com/solutions/all.html

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