Siemens SEN to Acquire Nortel's Enterprise Client Unit?

In the latest incarnation of a likely break-up of North America’s largest telecom equipment vendor that started with major division sell-offs several weeks ago, Nortel Networks Corp., reportedly now has drawn the attention of Siemens Enterprise Communications.

 

The Siemens (News - Alert) Enterprise Communications Group – or “SEN Group” as it’s known – which was sold last summer to Gores Group by German engineering giant Siemens – is interested in some of Nortel’s (News - Alert) assets as it pursues greater presence in the United States, according to Reuters (News - Alert) reporter Jens Hack.

 

Specifically, SEN’s chief executive James O’Neill told the wire service that the company was interested in Nortel’s enterprise client unit.

 

“We are looking into that,” O’Neill reportedly said. He added that the unit’s business with the U.S. government was particularly appealing, and that SEN, which is present in Europe and Asia, is trying to get a foothold in U.S. markets, regardless of whether it acquires a piece of Nortel.

 

That’s interesting, and may signal that Gores is happy about the way SEN is integrating with its (relatively) recently added networking division, Enterasys.

 

For Toronto-based Nortel, which IT insiders say could be facing extinction as a standalone company, the interest from SEN signals what the vendor long has denied – that it’s completely breaking up. In the past few months along, the one-time stock market darling has faced financial losses, bankruptcy, sweeping layoffs and the selling off of major divisions.

 

TMC (News - Alert) President Rich Tehrani reported recently that the company appears to facing a near-complete break-up.

 

“The news is sad but true,” Tehrani reports.

 

“What is terrible about the situation from my perspective is the communications and tech spaces are doing well relative to most other markets,” Tehrani reports. “In other words, this downturn for these markets has not been terrible. And there is a chance we could see these spaces bounce back faster than other industries.”