Ciena raises bid for some Nortel assets-sources

NEW YORK Sun Nov 22, 2009 3:28pm EST

NEW YORK Nov 22 (Reuters) - Ciena Corp CIEN.O has raised its offer for Nortel Networks Corp's optical networking and carrier ethernet business to $714 million, sources familiar with the matter said on Sunday, as the auction for these assets entered its third day.

Ciena's new bid now consists of $500 million in cash and $214 million in convertible notes, the sources said, speaking on condition of anonymity since details of the auction have not been made public.

Ciena's initial bid for these assets of the bankrupt Canadian telecommunications gear maker consisted of $390 million in cash and 10 million in shares of Ciena's stock. Based on the Friday closing price of Ciena's stock, that offer was valued at $522 million.

Earlier this week, another source familiar with the sale told Reuters that Nokia Siemens Networks [NSN.UL] and private equity firm One Equity Partners have also jointly bid for the assets.

Representatives for Ciena and Nortel did not immediately return calls seeking comment. Nokia Siemens declined comment. ((To see Reuters MediaFile blog, double-click on: here )) (Reporting by Anupreeta Das) ((anupreeta.das@thomsonreuters.com; +1-646-223-6224))

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