Lucent fends off Ericsson for Riverstone
Lucent has won the auction for Riverstone, the bankrupt networking equipment maker, with a bid of $207m. Originally, it had offered $170m for the firm's assets, but its pitch was queered by Ericsson.
Ericsson unexpectedly offered $178m for the assets, forcing Lucent to up the ante.
Riverstone makes carrier-class Ethernet routers and these will help Lucent compete more effectively for the so-called triple-play market - voice, data and TV - against Alcatel. According to Lucent, the routers "uniquely delivers the reliability that allows carriers to meet the triple play service requirements of their customers in a cost-effective and scalable way. Riverstone allows carriers to offer new services over existing revenue-generating networks permitting them to evolve to a next generation Ethernet infrastructure".
Riverstone went titsup in February with debts of $130m. The deal is up for approval today in a US bankruptcy court and is expected to close in April. ®