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Private Equity, Nortel Said To Be Courting Avaya |
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Written by Adam Gosling
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Tuesday, 29 May 2007 |
Major corporate telco provider, Avaya, is rumoured to be in talks with Nortel Networks and a Private Equity firm in an effort to sell off the company.
Quoting "people familiar with
the matter" a Wall Street Journal report claims the company has even approached Nortel about a possible acquisition casting a degree of doubt over the claims.
THE WSJ story says a deal to sell Avaya to Nortel
"cooled off" earlier this month when the two company's couldn't agree
on price. The two companies are still talking and could come to an
agreement "could still
materialize" the unnamed sources said.
Avaya, which the WSJ calculates has a market cap of US$6.18
billion has good cash flow and low debt levels making it attractive to private-equity firms as well though.
The Journals claims Avaya is in talks with private-equity firm Silver
Lake
Partners about a leveraged-buyout plan and cites the fact that Avaya
postponed its analyst-day meeting scheduled for
May 31 without rescheduling it as a possible sign a deal is in the
making. Avaya has a $829 million honey pot in the bank and no debt
making it a very leveraged buyout proposition says the story.
VoIP News will be attending Avaya Connect 2007 as a guest of the company later this week in Sydney.
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