Nortel Networks Corp is in a stalking horse talks with Avaya Inc on its principal operating subsidiary Nortel Networks Limited (NNL) and certain of its other subsidiaries.
Nortel is set to sell its Enterprise subsidiaries in North America, Caribbean and Latin America, and Asia, as well as assets in Europe, Middle East and Africa to Avaya for $475 Million deal. In addition to the proposed purchase price the Nortel Government Solutions and diamondWare are also included.
Nortel is planning to file the agreement with the United States Bankruptcy Court for the District of Delaware which in return will conduct an auction allowing other qualified bidders to submit higher or otherwise better offers. The final agreement is subject to approval from US bankruptcy court and the bankruptcy division of the Ontario Superior Court of Justice.
Nortel has been operating under bankruptcy protection since January.
Recently, Nokia Siemens Networks entered into a similar agreement to buy Nortel's carrier wireless assets, which include CDMA and LTE technologies for US$650 million.
We continue to be fully focused on running our operations and continuing to serve our customers while actively engaged in the sale of our businesses. We have determined that the sale of our businesses maximizes value while preserving innovation platforms, customer relationships and jobs to the greatest extent possible. The CDMA and LTE Access stalking horse asset sale agreement announced on June 19th, and today's agreements around our Enterprise business are solid proof of that value, Nortel President and Chief Executive Officer, Mike Zafirovski said.
If ever, Metro Ethernet unit is left alone for Nortel upon the successful agreement of Avaya and Nokia Siemens Networks .