[November 23, 2009] Ciena wins auction for Nortel's Optical Networking and Carrier Ethernet businesses Tweet Nov 23, 2009 (M2 EQUITYBITES via COMTEX) -- Nortel Networks Corporation (OTCBB:NRTLQ) today announced that Ciena Corporation has emerged as the winning bidder in the auction to dispose of the corporation's Optical Networking and Carrier Ethernet businesses, with a purchase price of USD530m cash plus USD239m principle amount of convertible notes. The transaction must still be approved by the bankruptcy courts in the US and Canada and also by courts in France and Israel. US anti-trust clearance for the sale has already been obtained. The sale is also subject to certain regulatory approvals, information and consultation with employee representatives and/or employees in certain EMEA jurisdictions, other customary closing conditions and certain post-closing purchase price adjustments. Nortel and Ciena are working towards closing the transaction in the first quarter of 2010. Under the agreement, at least 2,000 Nortel employees will receive offers of employment from Ciena, including those based in certain EMEA jurisdictions where their transfer to Ciena is mandated by local legislation. In total around 85% of the Optical Networking and Carrier Ethernet employee base are expected to receive offers of employment from Ciena. Nortel did not announce any details regarding the disposition of the remaining staff contracts. If approved by the courts, Ciena's purchase will include substantially all product platforms, patents and intellectual property that are predominantly used in the businesses and provides for the transition of substantially all of Nortel's Optical Networking and Carrier Ethernet customer contracts to Ciena. A Ciena spokesperson said that the deal would create one of the largest companies focussed on converged Ethernet networking. Comments on this story may be sent to [email protected] [ Back To TMCnet.com's Homepage ]