Report: Nortel ES unit draws additional bids

Nortel announced Friday it has received additional bids for its Enterprise Solutions division, but did not specify which companies have placed them. Siemens Gore, a recently formed joint venture between Siemens and The Gores Group LLC, has been suggested as a likely bidder for the unit by Phone Plus.

Avaya submitted a $475 million stalking horse bid for the unit July 20, but that bid could take months to process, given a "hell or high water clause" that requires Avaya to do everything necessary to complete the transaction, according to Allan Sulkin at No Jitter. According to Sulkin, this clause could cause any winning bid for the company to fail ultimately, which would be costly for Nortel's creditors. Nortel must continue to provide working capital for the business until a deal is finalized, which Sulkin suggests could cost up to $400 million for six months, while revenue for the unit may continue to decline as it did in Q2.

The deadline to submit a bid for the unit was Friday, Sept. 4. 

For more:
- see the No Jitter post on the deal situation here
- see the Reuter's article on potential additional bids here
- see the Phone Plus article on Siemens Gore's interest in the unit here 

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