If competitive concerns are mounting, this may have contributed:
New York, Nov. 13 (Bloomberg) -- PF.Net Communications Inc. Chairman Robert Annunziata said Nortel Networks Corp. and Corvis Corp. are contenders to supply his company with at least $200 million of fiber-optic equipment and financing to purchase it.
The closely held company also is talking with Cisco Systems Inc. about the contract, he said. It needs the equipment in time to power the first phase of a 17,000-mile telecommunications network in the first quarter.
Chief Financial Officer Dave Taylor said aggressive financing and quality software to manage the network are among the requirements for a winning bid. Corvis is being more aggressive on financing than in the past, while Nortel already has extended $125 million of credit to PF.Net, he said.
''Corvis software is very good, Nortel is very good,'' Annunziata said in an interview at UBS Warburg LLC's Global Telecom Conference in New York. ''They're strong candidates.''
PF.Net, which is backed by Odyssey Investment Partners LLC, wants to explore the possibility of taking a stake in Corvis in return for buying its equipment, Taylor said. He named Broadwing Inc., which took a stake in Corvis in June, before the equipment maker went public, as the model for such a transaction.
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Be nice to see an announcement NT won the contract, but not if it was based on more financing.
BTW, Corvis is tanking hard today, down 7 to 40 3/8. |
