Avaya (AVYA) - Get Report shares surged Tuesday after the telecom-equipment and software producer said in its quarterly earnings report that it was in advanced talks with multiple partners on potential deals to boost value for shareholders.
The stock closed 15% higher at $11.80 after the Santa Clara, Calif., company reported earnings.
The report was mixed but the company said it hoped to complete the assessment of alternatives within 30 days.
In March, Reuters reported that Avaya was weighing a $5 billion buyout offer from a private-equity firm, which wasn't identified.
"As an update on the strategic-alternatives process we are conducting with J.P. Morgan, at this time we are in advanced discussions with multiple parties on a range of strategic transactions to maximize shareholder value," said Jim Chirico, president and CEO of Avaya, in a press statement.
Avaya, which emerged from bankruptcy protection 19 months ago and underwent a leveraged buyout in 2007, posted a loss of $5.70 a share after a $657 million noncash goodwill impairment charge for the quarter.
Analysts polled by FactSet had predicted earnings per share of 66 cents.
Avaya did beat quarterly revenue estimates, hauling in $720 million compared with the FactSet survey's estimate of $716 million.