Nortel's Carrier VoIP Unit Heads to Auction
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Embattled telecommunications vendor Nortel is pressing ahead with its asset sell-off. Now up for grabs is its carrier VoIP unit. Despite Nortel's own bankruptcy, the division has been growing rapidly -- signing dozens of clients this year alone. Enterprise Networking Planet has the story.
Nortel is set to exit 2009 as little more than a shell of its former self as the beleaguered network telecom vendor works to sell off its assets. That effort continues with a new Nortel asset now on the auction block: its Carrier VoIP and Application Solutions (CVAS) business.
Already, there's been some interested in the unit. IP gateway vendor Genband has made a "stalking horse" bid for Nortel's CVAS business, with a starting offer of $282 million.
The move, officially known as a "stalking horse" bid," means that Genband's offer has set the floor price for an auction through which other vendors could try and potentially out bid it. The final auction date will be set in early January after Nortel receives U.S. and Canadian court approvals for the CVAS sale.