Riverstone declares Lucent winner of auction for business with $207 million bid

By Caroline Salls

Pittsburgh, March 21 - Riverstone Networks, Inc. declared Lucent Technologies the winner of the auction for the sale of Riverstone's business, with a $207 million final cash bid, according to a company news release.

The sale hearing is scheduled for Thursday.

Lucent's original bid was $170 million. Riverstone also received a $178 million offer from Ericsson Inc., the U.S. operating unit of Swedish telecommunications vendor Telefonaktiebolaget LM Ericsson.

"We are pleased that our stockholders have realized greater value as a result of the auction process," Riverstone president and chief executive officer Oscar Rodriguez said in the release.

Ken Wirth, president of Lucent's Multimedia Network Solutions, said in the release, "Riverstone's people and products will play an important role in advancing Lucent's end-to-end converged ethernet/optical solutions and helping us in our efforts to take share of a growing ethernet carrier market."

The transaction is expected to close in early April.

Riverstone, a Santa Clara, Calif., provider of ethernet routers, filed for bankruptcy on Feb. 7 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-10110.

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