Nokia Siemens (NSN) Spats With Ciena Corp.(CIEN)
December 02, 2009 2:21 PM
Nokia Siemens Network (NYSE: NOK) has purportedly informed Nortel (OTC: NRTLQ) of its interest in Blackrock Munienhanced fund (NYSE: MEN).
It is said that Nokia has raised its bid for MEN to $ 810 Million in cash. Nokia is also planning to file its objection in a Delaware Bankruptcy court against Ciena’s (NYSE: CIEN) winning bid of MEN. If the court allows Nokia’s new offer then it is likely that Ciena will revise its bid. This will have further negative impact on Ciena’s share price.
Earlier S&P had downgraded Ciena’s credit rating from B+ to B. There had been four other downgrades from equity analysts.
Nokia is expected to go for Joint–ventures for increasing its market share. Therefore it is likely that Nokia will be aggressive in its pursuit of MEN. At $810million, Nokia offer will exceed the face value of Ciena’s offer. Soleil securites has given the price target of $11 on Ciena and has downgraded it to 'hold'.
