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Company News

NSN says ready to offer $810 mln for Nortel unit

HELSINKI, Dec 1 (Reuters) - Nokia Siemens Networks (NSN) will object in bankruptcy court to Ciena's CIEN.O $769 million purchase of Nortel's optical networking and carrier ethernet business, and is ready to raise its offer to $810 million in cash, a Nokia Siemens spokesman said on Tuesday.

Ciena trumped an offer by Nokia Siemens and its financial partner on Nov 22 in a three-day auction with a bid of $530 million in cash and $239 million in convertible notes. [ID:nN22395163]

Bankruptcy courts are due to decide on the deal on Dec 2.

“We can confirm we have notified the representatives of Nortel’s creditors that we are willing to offer $810 million in cash for the optical networking and carrier ethernet assets of Nortel, an increase to our final bid in the auction,” said Nokia Siemens spokesman Barry French.

“Along with our expert advisors, we continue to believe that the convertible notes offered by the competitive bidder carry significant risk and should not be valued the same as cash,” he said.

Ciena was not immediately available for comment. (Reporting by Tarmo Virki; Additional reporting by Anupreeta Das in New York) ((tarmo.virki@reuters.com, +358-9-680 50 235, Reuters messaging: tarmo.virki.reuters.com@reuters.net))

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