Nortel sells optical networking, carrier Ethernet business to Ciena

TORONTO – Nortel Networks has entered in to a ‘stalking horse’ asset sale agreement with Ciena for its global optical networking and carrier Ethernet businesses.Financial terms of the deal are US$390 million in cash and 10 million shares of Ciena common stock. Based on the closing price of Ciena's common stock on Tuesday’s NASDAQ, the shares have a current market value of approximately US$131 million, bringing the implied total value of the purchase to approximately US$521 million.The agreement includes substantially all assets of the optical networking and carrier Ethernet businesses globally, including Nortel's OME 6500, OM 5000 and CPL platforms, its 40G/100G technology,...