Ericsson Riverstone bid winner tonight is lucent

According to foreign media reports, Beijing time at 11 tonight, competition for the Swedish communications equipment giant American rival Ericsson and Lucent Technologies bidding Riverstone network company in New York that will see the outcome auction.

Due to operational difficulties, the U.S. telecommunications equipment manufacturer Riverstone network last month filed for bankruptcy protection with the U.S. bankruptcy court, and the company auction. First and Riverstone company to discuss matters related to the reception is the United States telecommunications giant Lucent Technologies. After a period of haggling, Lucent agreed to pay $170 million to buy its assets.

However, this month, Swedish Ericsson suddenly out. The company bid $178 million to get lucent technology off guard. According to Ericsson spokesman said that their bidding for Riverstone networks is to strengthen the fixed network business.

Ericsson did not reveal too much about the details of the bidding, but according to industry analysts said, Ericsson's acquisition of Riverstone network is to strengthen the recently acquired British Marconi Company business. Marconi has a certain strength in the fixed network, and Riverstone network routing technology, Ethernet technology and bearing can make Marconi a tiger with wings added.

Ericsson's move also shattered the current widespread spread of the industry, a rumor that Ericsson is considering the acquisition of the U.S. communications equipment industry, another giant Juniper network. Currently, Riverstone networks and Juniper products are similar, the business scope is also more consistent, even stronger in the field of ethernet. Ericsson can buy Riverstone at a much cheaper price.

For the two giant "rushed flatter" situation, the network company Riverstone said there is no third manufacturers to participate in bidding, but according to the previous agreement, Lucent Technologies can still be overweight".

According to the agreement reached by Lucent and Riverstone in February, if Riverstone filed for bankruptcy protection, Lucent would buy its assets in the auction and hire the majority of the company's 400 employees. At that time, Riverstone's stock market capitalization of about $125 million, Lucent technology bid $170 million, the industry believes lucent will have to win.

Riverstone network of the company is currently operating in a mess, the company has not released regular earnings for many years. According to rough data in November last year, the company sold $16 million 100 thousand in the previous quarter of hardware devices, has not yet reached breakeven point. At the time, Riverstone had $120 million in cash, but $65 million 900 thousand in debt.

The United States said Prudential securities analyst Inder Singh, Ericsson at another intention Riverstone company is IPTV market. He said that Riverstone's products regardless of the Lucent's IMS strategy and the IPTV market plan has a very big role, and Ericsson in these two markets also have business, so the Riverstone is also very coveted". (reporter: Linghu Da)