Ciena Wins Court Approval For Nortel Unit Bid

TORONTO (AP) — Ciena Corp. won court approval Thursday to start bidding on Nortel Network Corp.'s optical and Ethernet division with an offer valued at more than $532 million.

Bankruptcy court judges in Delaware and Ontario gave the bid process the green light after requesting changes in the auction rules. Creditors had complained the rules gave Ciena, the lead bidder, too much power over the auction process.

"We understand that there were changes to the bidding procedures and a change to the termination provisions of the stalking horse agreement," Nortel spokesman Bo Gowan wrote in an e-mail.

Ciena spokeswoman Nicole Anderson confirmed the court approval, but also did not provide any details.

The Optical Networking business includes some of Nortel's most sought-after businesses units, intellectual properties and employees.

Nortel, a former telecommunications equipment giant that at one point accounted for one-third of the market value on the entire Toronto Stock Exchange, filed for bankruptcy protection in Canada and the U.S. in January.