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Avaya on the Block: Reports TMCnet Web Editor Telecommunications manufacturer Avaya (News - Alert) could be a takeover target for several networking and private equity firms, according to several online reports.
The Wall Street Journal said suitors include networking companies Cisco Systems (News - Alert) and Nortel Networks as well as private equity firm Silver Lake. The report cited Avaya being an attractive takeover target because of its $6 billion cash flow and low debt.
Avaya’s May 31 analyst meeting has been postponed and not rescheduled – which some analysts reportedly interpret as a sign the company is in buyout talks.
According to the Journal report, Avaya and Nortel (News - Alert) had conducted buyout talks earlier in May but could not agree on a price or payment options. Cisco is reported to be another buyer as it competes with Avaya on business telephone switching technologies and may covet Avaya's private phone switch unit.
Avaya, which has reportedly declined comment, also has extensive patents and equipment to transform traditional phone and data systems into integrated IP-based networks.
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Spencer Chin is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page. Don't forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP  Communications industry. The library offers white papers, case studies and other documents which are free to registered users. |