Today’s Deals: Nortel Buys Alteon, not Corning

 Nortel Networks (NT) acquires Alteon WebSystems
(ATON)

  
* 
Amount:         $7.8
billion

  
* 
Terms:           
100% stock

  
* 
Premium:        n/a

  
* 
Industry:       
Speed/Bandwidth

  
* 
Scorecard:      B-

BOSTON, July 28–Nortel Networks announced a
definitive agreement to acquire San Jose, Calif.-based Alteon
WebSystems , a leader in content aware switching,
positioning Nortel Networks as
a leader in delivering high-performance Internet data centers. Nortel will
pay an estimated US $7.8 billion in its common shares or a fixed exchange
ratio of 1.83148 Nortel common shares for each share of Alteon WebSystems common stock. The
transaction is expected to close in the fourth quarter of 2000.




 

 NTL (NTLI) to acquire Virgin.net’s ISP
arm

  
* 
Amount:         $362
million

  
* 
Terms:           
cash and stock

  
* 
Premium:        n/a

  
* 
Industry:        ISPs/Access
providers

  
* 
Scorecard:      B+

LONDON, July 28–British firms NTL Inc.
and Virgin Group agreed to split up their joint venture, Virgin.net, in a deal which will see NTL
take over the unit’s Internet Service Provider (ISP) business. Cable
operator NTL will pay cash and shares for
its acquisition of 100% of Virgin.net’s ISP arm, in a deal worth $362
million, while Virgin, chaired by UK
entrepreneur Richard Branson, will assume 100% ownership of Virgin.net’s
content and commerce business. NTL said the acquisition would make it the
UK’s third largest ISP, behind Freeserve and AOL.