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 Bankrupt telecom equipment maker Nortel Networks Corp. agreed to sell its enterprise solutions businesses in Europe, Middle East and Africa to privately held Avaya Inc. for $475 million Monday, further thickening the plot around the company's post-bankruptcy fate. In addition to the purchase, Avaya, which was acquired by TPG Capital and Silver Late Partners in 2007, has put in a stalking-horse bid for Nortel's enterprise solutions business in North America, Latin America and Asia, allowing Avaya to bid on those assets before others. Nokia Siemens Networks BV, a joint venture between Nokia Corp. (NYSE:NOK) and Siemens AG (NYSE:SI), is the stalking-horse bidder for Nortel's wireless infrastructure business, with a start bid of $650 million. While the strategic bidders line up for Nortel's remains, private equity firm MatlinPatterson Global Advisors, however, has other ideas about the debt-laden Canadian company's future. The LBO shop, which already holds $400 million in Nortel bond debt, is unwilling to abandon its investment in the company and is reportedly gathering a consortium to buy the company, according to the Financial Times. Meanwhile Avaya may be pleased with its new enterprise businesses in Europe; it had best be careful about any downsizing at the former Nortel unit. Last week workers at a French Nortel plant threatened to blow up the facility if they didn't receive favorable severance packages. - George White See Nortel auction data from The Deal Pipeline (subscription required) See Nortel's advisers from The Deal magazine's Deal Diary
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