VoIP Systems

Nortel VoIP Auction Set for Late Feb

The auction of Nortel Networks Ltd. 's Carrier VoIP and Application Solutions (CVAS) business is set to take place on Thursday, February 25, the Canadian vendor announced late Wednesday.

Nortel says the "stalking horse" agreement with Genband Inc. , announced in late December, has been approved by the appropriate courts in Canada and the U.S., and that "higher or otherwise better offers" from other "qualified bidders" must be submitted by Tuesday February 23. (See Genband Bids $282M for Nortel's VoIP Unit and Charles Vogt, CEO, Genband.)

That means it'll be more than six weeks before we find out (with any degree of certainty) whether Genband will face any rival bids from the likes of NEC Corp. (Tokyo: 6701), Nokia Networks , and Sonus Networks Inc. (Nasdaq: SONS). (See Analyst: Nortel VoIP Biz Bids Imminent.)

The successful bidder will get Nortel's softswitching, IP voice gateway, and SIP application assets, including associated intellectual property, and take on up to 2,200 staff. (See Nortel Touts VoIP Market Share.)

Once the CVAS business is sold, Nortel will have few assets left to divest. (See Nortel: What's Left on the Shelf?)

— Ray Le Maistre, International Managing Editor, Light Reading

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