Anupreeta's Feed
Dec 3, 2009

Comcast-NBC deal could spur more M&A

NEW YORK (Reuters) – Comcast Corp’s <CMCSA.O> plan to take a controlling stake in NBC Universal has spurred many behind-the-scenes conversations, but whether any will result in actual deals depends on the outcome of a regulatory review that could take months.

Comcast on Thursday announced its deal to buy a 51 percent stake in NBC Universal from General Electric Co <GE.N>. GE will eventually sell the remaining 49 percent to Comcast, giving it full control of a rich array of programing and content, including Universal Studios.

Dec 3, 2009

GE, Comcast to announce NBCU deal

NEW YORK (Reuters) – General Electric Co <GE.N> and Comcast Corp <CMCSA.O> are set to announce a joint venture on Thursday morning that would give the cable company eventual control of NBC Universal in this year’s biggest media deal.

The deal values NBC Universal at about $30 billion and Comcast’s cable networks at $7.25 billion, sources familiar with the matter said on Wednesday.

Dec 3, 2009

GE, Comcast to announce NBCU deal Thursday morning

NEW YORK, Dec 2 (Reuters) – General Electric Co <GE.N> and
Comcast Corp <CMCSA.O> are set to announce a joint venture on
Thursday morning that would give the cable company eventual
control of NBC Universal in this year’s biggest media deal.

The deal values NBC Universal at about $30 billion and
Comcast’s cable networks at $7.25 billion, sources familiar
with the matter said on Wednesday.

Dec 1, 2009

NSN says ready to offer $810 million for Nortel unit

HELSINKI/NEW YORK (Reuters) – Nokia Siemens Networks will object in U.S. bankruptcy court to Ciena Corp’s <CIEN.O> $769 million bid for Nortel’s optical networking and carrier ethernet business, and is ready to raise its offer to $810 million in cash, the company said on Tuesday.

U.S. networking gear maker Ciena trumped an offer by Nokia Siemens and its financial partner, One Equity Partners, on November 22 in a three-day auction with an offer of $530 million in cash and $239 million in debt.

Dec 1, 2009

GE, Vivendi agree to value NBCU stake at $5.8 billion

NEW YORK (Reuters) – General Electric Co and Vivendi SA have agreed in principle to a deal in which GE would buy the French company’s 20 percent stake in NBC Universal for $5.8 billion, a source familiar with the matter said on Monday, paving the way for Comcast Corp’s proposed joint venture with GE.

The agreement is mainly the result of a meeting between GE Chief Executive Jeffrey Immelt and Vivendi’s CEO Jean-Bernard Levy in Paris last week, where the two parties made progress on the talks that had been going on for weeks, the source said.

Nov 24, 2009

MGM documents go to News Corp, Time Warner, others

NEW YORK (Reuters) – Metro-Goldwyn-Mayer, the famed film studio that is considering selling itself, has sent confidentiality agreements to about 20 interested parties including Time Warner Inc and News Corp, sources familiar with the matter said on Tuesday.

The studio, struggling with nearly $4 billion in debt, has also sent these documents to Lions Gate Entertainment Corp and Sony Corp, as a prelude to letting interested parties examine its books, the sources said.

Nov 23, 2009

Ciena beats NSN to buy Nortel’s businesses for $769 mln

HELSINKI/NEW YORK (Reuters) – Ciena Corp agreed to buy the optical networking and ethernet equipment businesses of bankrupt Nortel Networks for $769 million after trumping a bid from Nokia Siemens Networks.

The deal, which ends a three-day auction, will vault Ciena to third place in the optical network equipment market, boosting it against bigger rival Alcatel-Lucent and Huawei Technologies Co.

Nov 23, 2009

Ciena beats NSN to buy Nortel ops for $769 mln

HELSINKI/NEW YORK, Nov 23 (Reuters) – Ciena Corp <CIEN.O>
agreed to buy the optical networking and ethernet equipment
businesses of bankrupt Nortel Networks <NRTLQ.PK> for $769
million after trumping a bid from Nokia Siemens Networks. The deal, which ends a three-day auction, will vault Ciena to third place in the optical network equipment market, boosting it against bigger rival Alcatel-Lucent <ALUA.PA> and Huawei Technologies Co [HWT.UL]. But Ciena shares were down nearly 9 percent as investors worried about how the U.S. network equipment maker will integrate the new assets, which are expected to double Ciena's size, and how it will cope with an increased debt load. Ciena agreed to pay $530 million in cash and $239 million in 6 percent senior convertible notes due 2017 for the assets. Morgan Keegan analyst Simon Leopold downgraded his Ciena rating to "market perform" from "outperform" after the news. He said the winning bid was above his $400 million to $750 million valuation range for the assets and "appears as a win at all costs approach" from Ciena. "We feel that Ciena is assuming too much risk and degrading its balance sheet," Leopold said. "It will take time before there's sufficient evidence to assess whether it's a success for failure." Ciena Chief Executive Gary Smith defended the deal. "It is a large integration (but) made easier by the fact that it's such a good fit," Smith said in an interview. "It's incredibly complementary on terms of technology, people and customers." The deal is structured to give Ciena flexibility in managing the debt it will take on, Smith added. Pacific Crest analyst Brent Bracelin estimated that Ciena will have $1.3 billion in debt and $500 million in cash after the deal. "It's probably a long-term positive in that it will position Ciena with the size and scope to compete," Bracelin said, but he noted that investors are disappointed that the final price was much higher than Ciena's original bid. PRICE CONCERNS Last month, Ciena made a stalking-horse offer for the assets to Nortel, the Canadian company that has been auctioning off assets since it filed for bankruptcy in January. Ciena's initial offer was for $390 million in cash and 10 million shares, for a total deal value of $522 million based on Friday's closing price of Ciena stock. Ciena said it expected the transaction to add significantly to its results from operations in fiscal 2011. But investors are still concerned that the deal will weigh down its operations. Ciena, which had $902.4 million revenue in its fiscal year ended Oct. 31, 2008, will now have to swallow a business that brought Nortel annual revenue of $1.36 billion. "In the short term, there'll be concerns about the purchase price, the combined debt burden they'll have and integration risks," Bracelin said. The original Ciena bid set a floor price, but Nortel was free to seek higher offers. Rival Nokia Siemens, a venture of Nokia <NOK1V.HE> and Siemens <SIEGn.DE>, had teamed with private equity firm One Equity Partners and came "very close" to Ciena's offer, a source close to the deal said. "Nokia Siemens Networks believes that its final offer represented fair value for the assets, and further bidding could not be financially justified," the company said in a statement. HEADACHE FOR NOKIA SIEMENS Ciena sees the purchase of Nortel's Metro Ethernet Networks business as an opportunity to increase sales. The equipment supplied by both companies is used to support Internet access for corporations and consumers. Ciena shares were down $1.17 or 8.9 percent at $12.00 on the Nasdaq at midday on Monday after the company confirmed details of the deal. Nokia Siemens -- which is struggling to make a profit in the face of aggressive competition from Huawei -- was looking to strengthen its position in North America, one of its top four growth targets, along with India, Japan and China. Nokia Siemens lost a similar auction in July, when bigger rival Ericsson <ERIAF.PK> snapped up Nortel's CDMA assets. "Nokia Siemens should fix its market share in the United States. An acquisition would be the fastest solution for that, but integrations are costly and the company is in the midst of restructuring anyway," said Pohjola analyst Hannu Rauhala. Nortel has yet to sell its assets related to GSM and GSM-R technologies. These assets could also interest Nokia Siemens. ($1=.6697 Euro) (Reporting by Tarmo Virki and Anupreeta Das, additional reporting by Sinead Carew in New York; editing by Jon Loades-Carter and Matthew Lewis)

Nov 23, 2009

Ciena trumps NSN to buy Nortel ops for $769 million: sources

NEW YORK/HELSINKI (Reuters) – Ciena Corp <CIEN.O> will buy the optical networking and carrier ethernet business of bankrupt Nortel for $769 million, after trumping Nokia Siemens Networks in a three-day auction, sources told Reuters.

The deal will more than double turnover of U.S. network equipment maker Ciena, raising market worries over integration of operations, and over increase of its debt load.

Nov 23, 2009

Ciena to pay $769 mln for some Nortel assets -source

NEW YORK, Nov 22 (Reuters) – Ciena Corp <CIEN.O> will buy
Nortel Networks Corp’s optical networking and carrier ethernet
business for $769 million after trumping Nokia Siemens Networks
in a three-day auction, sources told Reuters on Sunday.

Last month, the U.S. network equipment maker announced it
had made a stalking-horse offer for these assets of Nortel, the
Canada-based telecommunications company that filed for
bankruptcy in January and has been auctioning off assets.

    • About Anupreeta

      "Anupreeta Das is a New York-based reporter covering technology, media and telecoms deals. She has previously written for The Boston Globe, the Christian Science Monitor and many Indian publications. She is the 2009 recipient of a Society of Business Editors and Writers breaking news award for her coverage of Microsoft's failed bid for Yahoo. Das also won a 2006 Foreign Press Association award and an Overseas Press Club scholarship. Das holds graduate degrees in journalism and international political economy from Boston University and the London School of Economics. She speaks fluent Hindi, Assamese and a little Mandarin."
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