InformationWeek

Ciena Bids $521 Million For Nortel Unit; Informal estimates have placed the value of Nortel's Optical Networking and Carrier Ethernet businesses at $800 million.

Ciena's $521 million bid for a prized Nortel Networks unit looks like a proverbial marriage made in heaven, but spoilers are likely waiting in the wings to trump Ciena's stalking horse bid.

Nortel has been selling off its assets one-by-one over the past months and each time an initial bid has been placed for a Nortel operation, another bidder has emerged with a higher and winning offer.

Ciena, which formally made the cash and stock offer Wednesday, has said Nortel's Optical Networking and Carrier Ethernet businesses would be an ideal fit for it and Nortel executives at the firm's Ontario headquarters have said they like the fact that Ciena already has a strong R&D operation in Canada. …

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