Regulators OK Ciena's bid to buy Nortel optical business

November 11, 2009

Regulators have cleared the way for Ciena Corp. to acquire the optical networking business of Toronto-based Nortel Networks Corp. for $521 million, the Linthicum technology company said Tuesday. Both U.S. and Canadian regulators waived waiting periods typically required under antitrust laws, Ciena said. But because Nortel is operating under bankruptcy-law protection, the company will be required to first offer the assets through a bankruptcy auction. The proposed sale also requires final approval of the U.S. Bankruptcy Court and the Ontario Superior Court of Justice. In October, Ciena said it signed agreements to pay $390 million in cash and 10 million shares of Ciena common stock, valued at $131 million, to acquire Nortel's optical networking and carrier Ethernet assets. Both companies manufacture equipment that connects communications networks.

- Lorraine Mirabella

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