The Ciena Theory
"Fujitsu and Ciena make the most sense to us. By the way, please don't bring up Sycamore," writes Mark Sue of RBC, in a note to clients today. "Fujitsu can bulk up its market share while Ciena gains a stop gap product line until their 100G optical product gains more meaningful traction."
Sue points out that, while Ciena could use Nortel's optical networking customer base and its 40-Gbit/s product portfolio, it's too small to get swept up in a bidding war against NSN or some other vendor in the space.
"Ciena can expand the opportunity by considering what Nortel wants. In our view, it's not just the highest bid," writes Sue. He notes that Ciena should carefully articulate its intention to buy Nortel's assets, its commitment to the market, and provide "some assurance that the employees will be taken care of."
Providing that kind of clarity might be worth as much to Nortel as a bigger bid from a bigger company, Sue says.
— Phil Harvey, Editor-in-Chief, Light Reading