HOT OF THE PRESS 4

[PERRYPJ]

Nortel To Sell Enterprise Solutions Business
•
Enters into Sale Agreements for Enterprise Solutions Business with Avaya for US$475 million
•
Sale of Businesses is Best Path for Nortel to Maximize Value While Preserving Innovation, Customer Relationships and Jobs to Greatest Extent Possible
•
Focus on Customers Continues Across all Businesses with Customer Service Levels at Multi-year Highs
TORONTO – Nortel* Networks Corporation [OTC: NRTLQ] today announced that it, its principal operating subsidiary Nortel Networks Limited (NNL) and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited, have entered into a “stalking horse” asset and share sale agreement with Avaya Inc. (Avaya) for its North American, Caribbean and Latin America (CALA) and Asia Enterprise Solutions business; and an asset sale agreement with Avaya for the Europe, Middle East and Africa (EMEA) portion of its Enterprise Solutions business for a purchase price of US$475 million. These agreements include the planned sale of substantially all of the assets of the Enterprise Solutions business globally as well as the shares of Nortel Government Solutions Incorporated (NGS) and DiamondWare, Ltd.

OLD ROLMEN WORKING ON NORTELS AND AVAYA

 

[xtract]

Well AVAYA is not the same AVAYA before,it is owned by private group now, so Nortel Enterprise will be one of their division,it should be say Nortel bought by private equity not AVAYA

 

[Johnthephoneguy]

Tell that to the Avaya people, they have it listed on the

http://www.avaya.com

homepage. Or maybe you know more about it than they do lol

JohnThePhoneGuy

"If I can't fix it, it's not broke!

 

[bigindian65]

lol!

Mato' Was'aka

 

[Tman45]

Guess we will start buying overpriced Avaya stuff. I don't mind Avaya ... it was just a pain when we first installed as we were putting on patches every week. Lots of late night work ahead It has been over three years since I worked on Avaya, so maybe its better now?

 

[hawks]

Hey it's not too late.. come on we can come up with oh say $451 mil and make our own bid..... I got $100 to start with.

 

[janaya]

Just remember that a stalking horse bid just opens the official door for the sale of Nortel. There will now be a 60 day period where other groups can come in and provide higher or better bids than Avaya's.

My money is still on Siemens buying the company and keeping the Nortel products intact.

 

[daleblizz]

Nortel Customers Respond to Avaya Acquisition
Customers Optimistic about Future
CHICAGO, IL – The International Nortel Networks Users Association (INNUA) today voiced its support for
Nortel’s selection of Avaya as the “stalking horse” for its Enterprise Solutions business. The group of
more than 4,000 Nortel customers worldwide believes the acquisition will allow the company to refocus its
energy and resources on its solutions, and quiet concerns about the corporate structure that has
beleaguered the company.

This is from INNUAs website.

Why would they think that this is a good thing? Did they really think Avaya will keep ANY of the Nortel products?

 

[daleblizz]

janaya
"My money is still on Siemens buying the company and keeping the Nortel products intact."

That would be nice, but didn't Siemens buy Rolm a few years back?

What about MatlinPatterson Global Advisers LLC's plan to keep the company together? Does that have any chance? It seems like they're breaking the company up for a bargain-basement price. BuisnessWeek said they had one patent worth $2.7 billion, that was included in the $650 billion Nokia bid.

 

[janaya]

Siemens bought Rolm from IBM back in the late 90's and then destroyed a perfectly good PBX. I see this as the fit because it puts them back in the CPE business with a portfolio of products already in use. Avaya taking control would not be a good idea for service providers. Avaya takes all service contracts under their umbrella and does not let their service partners provide this maintenance. It's a situation where they want you to go out and sell their product, but they will maintain. There is no money in new system sales, its all in the managed services that are provided after the install, and Avaya keeps that inhouse.