Nortel's Carve-Up May Continue

Nortel's(NT Quote) corporate networks division may be next on the chopping block, after the troubled telecom equipment manufacturer finally completed the sale its Alteon switch business to Israeli network specialist Radware(RDWR Quote).

The Canadian firm may draw bids from Avaya and Siemens Enterprise Communications for its corporate networks business, according to Bloomberg, which cites two sources familiar with the matter.

The division is said to be worth around $500 million, and Bloomberg reports that bids may be due later this week.

Nortel, which filed for bankruptcy protection in January, is still working out its long-term strategy, although there has been plenty of speculation about its future.

The company was typically tight-lipped when contacted by TheStreet.com about the possible sale of its enterprise business to Avaya or Siemens.

"We have no comment on rumor and speculation," wrote Nortel spokesman Mohammed Nakhooda, in an email. "However, as we have said before, planning is underway to seek opportunities that provide maximum benefits to our key stakeholders, including our creditors, customers and employees."

Avaya and Siemens have not yet responded to TheStreet.com's request for comment.

Nortel is rumored to be carving off key assets, suggesting that the firm may break itself up rather than emerge from bankruptcy as initially planned.

Ciena(CIEN Quote), for example, was recently rumored to be eyeing Nortel's metro Ethernet networks business and this is not the first time that Avaya and Siemens have been mentioned as possible acquirers of Nortel assets.

The Toronto, Ontario-based firm had originally announced the sale of its metro Ethernet networks division in September, only to suspend the sell-off earlier this year.