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Nortel Enterprise Unit Headed for Tussle

Avaya Inc. will have competition when Nortel Networks Corp.’s (NT) enterprise unit goes up for auction.

The Gores Group LLC and Siemens AG (SI) said Wednesday they’ve formed a joint venture called Enterprise Networks Holdings (ENH) to pursue the purchase of Nortel’s division.

But first they want assurances that the courts will rework provisions to strip Avaya of unfair advantages. The companies say there are clauses that put other bidders – and Nortel creditors – on the sidelines if officials the matter.

Avaya has offered $475 million for bankrupt Nortel’s enterprise business.

The procedures surrounding the sale should be finalized on or around Aug. 4, according to reports.


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