Avaya proposes to acquire Nortel – Kissing cousins could be merged by the end of the year

What has happened?

Avaya has announced today, July 20, 2009, their desire to acquire Nortel’s Enterprise Business Unit  and the shares of Nortel Government Solutions and DiamondWare, Ltd, bidding $475M for the businesses.  Avaya has offered to assume $28M in debt associated with Nortel Government Solutions as part of the transaction.   This kicks off a set of processes that will lead to a new owner for Nortel – and it may be Avaya or some other bidder.

Why are Nortel and Avaya interested in joining forces?

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