Nortel Assets on Radware's Radar: Report

Updated from 2:48 p.m. EST

Network specialist Radware (RDWR) is poised to buy part of troubled telecom equipment giant Nortel Networks (NT), according to a report on Israeli tech news Web site Globes.

Citing unnamed sources, Globes reports that Tel Aviv-based Radware will spend between $30 million and $50 million to acquire all or part of Nortel's metro Ethernet networks business.

Nortel declined to comment on the Radware report.

Canada-based Nortel, keen to streamline its business and boost its flagging share price after wrestling with plummeting sales of its wireless gear, announced plans to divest its metro Ethernet networks business in September.

A quick sale of Nortel assets could benefit the company's beleaguered stock, which took a severe beating toward the end of 2008. Nortel even received a stern ultimatum last month: Boost share price or get booted from the NYSE.

Nortel's shares closed Thursday's trading session up 3.6% at 29 cents, well below their 52-week high of $13.71.

The telecom equipment specialist, which competes with Cisco Systems (CSCO) and Motorola (MOT), posted a $3.4 billion loss in its recent third-quarter results. Nortel's revenue fell 14% to $2.32 billion, and the company said it plans to cut 1,300 jobs in an attempt to boost its business.

Firms such as Ericsson, Huawei, Nokia Siemens (NOK), Huawei and Cisco have already been cited as potential bidders for Nortel's metro Ethernet business. The Toronto Globe and Mail recently reported that the firm has received three separate offers that are worth close to $1 billion, although Nortel has not yet confirmed this.

Given the $1 billion figure, however, it seems unlikely that Radware would walk away with a huge chunk of Nortel's assets for just $50 million.