merry,
From Raging Bull...Latest rumor on CORV ..Sorry if it has been posted or is dated... I just seen it...coug
Forbes.com
Nortel Considering $10 Billion Buy?
By Kathleen Cholewka
Nortel Networks is angling to make a $10 billion acquisition next week, a source close to Nortel told Forbes.com.
The likely target is privately held startup Corvis, which filed for its IPO as CORV on July 25, according to the source.
Purchasing the Columbia, Md.-based vendor would make sense for Nortel (NYSE: NT - news) because of Corvis' optical networking systems--the switches, amplifiers and other transmission equipment that make up the infrastructure of new public communications networks. Corvis boasts its products allow network providers to transmit the highest capacity data for the longest distance.
It's no wonder Corvis could garner such a price. The optical networking market is going ballistic--some analysts have predicted the optical networking market could reach $170 billion next year.
Corvis would also be valuable to Nortel for contracts to test its products with national network providers like Williams Communications (NYSE: WCG - news), Qwest Communications International (NYSE: Q - news) and Broadwing (NYSE: BRW - news). Corvis founder David Huber has raised $300 million in venture capital so far. In addition, Corvis has investments from networking giant Cisco Systems (Nasdaq: CSCO - news).
Another possible target for Nortel to buy is startup Juniper Networks (Nasdaq: JNPR - news). Purchasing Juniper would make sense because of Juniper's high-speed networking routers. Juniper, which has been consistently first to market with its hardware and software, has close ties to Cisco in collaborating in testing their routers for interoperability.
Juniper, which reported $251 million in annual sales, counts Cable & Wireless and UUnet as its customers.
Nortel declined comment on the report. |
