Force 10: Thanks But No Thanks, Nortel

According to The Deal, Force 10 has turned down a $500-million offer from Nortel. VC Ratings  said one of Force 10’s investors said the company wants to do an IPO worth at least $1-billion within 18 months. Force 10’s investors include Morgenthaler Ventures, Meritech Capital Partners, Crosslink Capital, U.S. Venture Partners, New Enterprise Associates and Worldview Technology Partners. Here’s VC Ratings’ take on Force 10’s decision: “The interest from Nortel is a good sign for those VCs. And if their instincts are right about where communications equipment valuations are headed over the next 18 months, more offers for resilient networking startups should be coming.”

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6 Responses to “Force 10: Thanks But No Thanks, Nortel”

  1. Observer Says:

    Sounds like a PR ploy to insinuate NT has the money (or history of success for that matter), to still do acquisitions in this consolidating sector, let alone one of this size.

    Speaking of PR, their PR guy is just departed too. Perhaps some one is finally fed up with their traditional “one of the biggest”, “one of the largest”, “one of the fastest” “one of the tallest”, etc., ongoing hype as the stock tanks. I hope this doesn’t have anything to do with their failing to initially announce BSNL order years back fearing false and misleading press release.

    Analysts hated the PEC deal they paid a premium for like their CEO, they also paid a premium for Tasman too (12X sales), yet sell they sell UMTS at a discount of 300M from the expected 500M after selling off their assets, headwuarters, manufacturing… and now they want to spend what they keep in bonuses on an acquisition with a projected 1.6B cash by year end? I do not think Force 10 would eant Nortel paper any more than the SEC’s fines.

    Hard to put a good PR spin on anything they do new marketing guys, new CEOs, now new PR people, slogans, as even those they want to buy, let alone merge turn onto zeros like BT, Huawei, or Putian, and no Neptune, Dolphin Titan, no product so cutting product, no reliable numbers, no Force10 now either… What’s next? No Nortel in this trend?

  2. Stanley's psychiatrist Says:

    observer=jamezzz!LOL=jackass!LOLOLOLOLOL

    did you take your haldol today jamezzz?

  3. Observer Says:

    What is your vested interest to contributing zero to the topic?

    What do you disagree with to peronal attack and fabricate insults like a juvinile “jackass” as you would say judging others’ reactions from your own.

    Are you not worried the SEC won’t subpoena Yahoo and other authorities to find out who is “mindgallery” and their boiler community room community pumping Nortel the last few years? As if being the realists whipping boy isn’t enough there, you must pollute here too with zero contribution? Shame on you…

    You Nortel pumpers are a direct refection of the stock you support, slandering, lie, impersonate, anatagonize, stalk, beyond anyone civil’s comprehension. What is your vested interest, no one pumps so relentlessly all the way down, are you an employee?

    We will continue to expose facts and the truth as we see them, if you have nothing to contribute STFU as you would say with the intellect that would even make the hardest criminal cowar in dusgust. Your posts speak for themselves. Challenged.

  4. rocky samborsky Says:

    Stanley is right, observer/jamezzz. You need to get back to the laughing factory for some help, before you hurt yourself or others.

  5. Anonymous Says:

    “Analysts hated the PEC deal they paid a premium for like their CEO, they also paid a premium for Tasman too (12X sales), yet sell they sell UMTS at a discount of 300M from the expected 500M after selling off their assets..”

    Why is paying 12X sales a “premium” for a company? What is the normal price expected to purchase a company? 1X sales?

    Why is selling UMTS at a discount for 300M. Wasn’t anything outside of the negotiated price just speculation and rumored amounts?

  6. Observer Says:

    “Why is paying 12X sales a “premium” for a company? What is the normal price expected to purchase a company? 1X sales?”
    No, 3X earnings.

    “Why is selling UMTS at a discount for 300M. Wasn’t anything outside of the negotiated price just speculation and rumored amounts? ”
    Rumour, no, the $500M was an amount pegged by analysts.

    =)

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