x
Ethernet equipment

Who Wanted WWP?

9:14 AM -- An unsubstantiated quick hit: One source with knowledge of the negotiations says Ciena Corp. (NYSE: CIEN) did get into a bidding war over World Wide Packets Inc.

That would explain Ciena's apparently over-the-top offer of $305 million for the startup. (See Ciena Takes Out World Wide Packets and Did Ciena Overpay for WWP?)

With ANDA Networks Inc. deciding to try an IPO, and Atrica Inc. claimed by Nokia Networks , Ciena apparently didn't want to lose out on WWP, one of the few metro Ethernet plays left on the market.

So who else bid? The source says: Ericsson AB (Nasdaq: ERIC), Juniper Networks Inc. (NYSE: JNPR), and Tellabs Inc. (Nasdaq: TLAB; Frankfurt: BTLA).

None of the three will comment, naturally, and we stress that this isn't a rumor with good confirmation behind it. It opens some interesting possibilities, though -- especially in the case of Juniper, which is embracing Ethernet more and more lately. (See Juniper Storms Into Ethernet Switching and Juniper Gains Ethernet Mojo.) — Craig Matsumoto, West Coast Editor, Light Reading

douggreen 12/5/2012 | 3:48:38 PM
re: Who Wanted WWP? INVESTMENT BANKING 101.

Decide on a most-likely or most attractive buyer. Lets assume this was Ciena. Then generate competition. First move is to go after their OEMs. This works especially well if the OEMs are competitors. If not, then try to push the deal to one of Cienas competitors, pushing how the synergy with this product will drag other sales, moving market share for other products to whomever gets the WWP product. Even if they are not interested, start a rumor that they are.

SO.. first bet is to look at WWPs OEMs. As I said before, however, you should be able to get the right investment banker to give it up for a scotch and a good honduran cigar. Isn't there a reason that you guys have your offices so close to Wall Street?
paolo.franzoi 12/5/2012 | 3:48:38 PM
re: Who Wanted WWP?
I bid tree fiddy for WWP and thought I was overpaying.

seven
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE