Nortel Postpones Optical Auction
The auction had been due to take place today, Friday 13th, but Nortel announced around midday that "in light of ongoing discussions with interested parties," it decided not to bother. (See Nortel's MEN Auction Set for Nov. 13.)
In other words, it's been delayed due to lack of interest. And the last thing Nortel wants is an auction with only one participant: If Ciena walks away with MEN for $521 million, many would regard that as something of a bargain. Most valuations put a fair price of $800 million to $1 billion on the MEN division.
Nortel says "qualified bidders are now required to submit offers by November 17, 2009," and that it "expects to provide a further update on the auction process and sale" of its global optical networking and Carrier Ethernet businesses "next week."
Maybe Nokia Networks hasn't completed its paperwork... (See Nokia Siemens: Hot for Nortel's MEN?)
Nortel is also due to announce its third-quarter sales next week, probably Monday 16, which will provide the whole industry with a guide as to how well, or badly, the MEN division is performing.
— Ray Le Maistre, International News Editor, Light Reading