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GALWAY, IRELAND--November 18, 2009--Researched by Industrial Info Resources (Sugar Land, Texas)--Statkraft AS (Oslo, Norway) plans to develop a second power plant at the Knapsack Industrial Estate in Hurth, Germany. The power plant, which will have a capacity of 430 megawatts (MW) and will cost about 300 million euros ($446 million), is expected to go online by 2012. Statkraft initiated a land survey early this year, and licensing procedures are now under way. The final investment decision is likely to be made by mid-2010. The combined-cycle gas-turbine (CCGT) plant will be built a 5-hectare area within the estate, where Statkraft has been operating an 800-MW unit since 2007.
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The telecommunication and network specialist, Ciena Corporation (CIEN) announced that it has received regulatory approval for the proposed acquisition of substantially all of Nortel Network Corp.'s (NT) optical and Ethernet division.
The company has been granted termination of the waiting period under the Hart-Scott Rodino Act in the United States. The Canadian Competition Bureau has also approved the takeover.
Ciena plans to acquire substantially all of the optical networking and carrier Ethernet assets of its rival Nortel Networks’ Metro Ethernet Networks (MEN) division, for a total of $521 million ($390 million in cash and 10 million in shares worth $142 million based on the Oct. 15 market price).
However, the deal also requires the approval of the United States Bankruptcy Court for the District of Delaware and the Ontario Superior Court of Justice. Nortel had filed for bankruptcy in January.
The deal is still subject to a competitive bidding process scheduled for Nov. 13. Recently, according to a Bloomberg report, it appears that Nokia Siemens Networks, a joint venture between Nokia (NOK) and Siemens AG (SI) may bid for Nortel’s Ethernet business, which could enable it to expand its own Ethernet business in North America.
With a market capitalization of $1.12 billion, we expect Ciena to clinch the deal, which would help the company’s Carrier Ethernet platform differentiate and provide a competitive advantage against larger players such as Alcatel-Lucent (ALU), Cisco Systems (CSCO) and Tellabs (TLAB).
We believe that the deal will provide strong growth potential to Ciena’s rapidly expanding metro Ethernet business and optical networking products. The Nortel deal would be the largest ever for Ciena and would also help it expand geographically.
Nortel Network Corp.’s (NT) said that the final auction for acquiring all of its Metro optical and Ethernet Networks division is on Nov 20, 2009.
The deal is subject to a competitive bidding process. Nokia Siemens Networks, a joint venture between Nokia (NOK) and Siemens AG (SI) and a private equity firm One Equity Partners have jointly [...]
Nortel Network Corp.'s (NT) said that the final auction for acquiring all of its Metro optical and Ethernet Networks (MEN) division is on Nov 20, 2009.
The deal is subject to a competitive bidding process. Nokia Siemens Networks, a joint venture between Nokia (NOK) and Siemens AG(SI) and a private equity firm One Equity Partners have jointly bid for Nortel’s optical networking and carrier Ethernet business challenging Ciena Corporation’s (CIEN) bid for the assets.
The telecommunication and network specialist Ciena offered a total of $521 million ($390 million in cash and 10 million in shares) to Nortel for acquiring substantially all of its MEN division.
We believe that the deal has strong growth potential for Ciena’s rapidly expanding metro Ethernet business and optical networking products. The Nortel deal would be the largest ever for Ciena and would also help it expand geographically.
While the Nortel acquisition will enable revenue growth, integration risk will be an issue. Moreover, the deal could pull Ciena into a net debt (debt exceeding cash) position. Other potential bidders include Ericsson(ERIC) and Infinera(INFN), who could take the deal away from Ciena.
Ciena reported better-than-expected results for the third quarter amid cautious consumer spending and weak demand. However, the more stable macroeconomic environment helped it deliver sequential growth, although year-over-year comparisons have been weak.
Ciena is set to announce its fourth quarter results on Dec 10, 2009. Though market conditions have improved Ciena expects results to be lumpy as customers are still spending cautiously. As a result, the company guided revenue in the fourth quarter to be flat sequentially.
Non-GAAP operating expenses for the fourth quarter are expected to be in the low to mid $80.0 million range. The company expects higher prototype costs in the upcoming quarter.
While pricing remains competitive, the company expects to sustain gross margins in the mid to high 40% range in the near term. Ciena’s restructuring initiatives to trim operating expenses appear positive for the company.
Although we do not expect Ciena to become profitable in the next two quarters, we do expect a recovery in 2010 due to favorable operational execution and growth in data traffic. However, uncertainty regarding the closure of the acquisition of Nortel’s assets further adds to the risk.
A new fuel technology - unveiled just two weeks ago - is about to revolutionize the energy business.
I saw it firsthand.
General Electric Co. (GE) asked me to present “The Future of Natural Gas” at the company’s Gas Turbine Symposium in Greenville, S.C. That’s where GE revealed a new generation of its market-leading ...
A new fuel technology – unveiled just two weeks ago – is about to revolutionize the energy business.
I saw it firsthand.
General Electric Co. (NYSE: GE) asked me to present “The Future of Natural Gas” at the company’s Gas Turbine Symposium in Greenville, S.C. That’s where GE revealed a new generation of its market-leading turbine technology.[More...]
In September, the Producer Price Index rose by 0.3%. While this is an acceleration from the 0.6% decline in September, it is well below consensus expectations of a 0.5% increase.
All of the price pressures were coming from food and energy. If they are stripped out to get the Core Producer Price Index, prices fell by [...]
Companies featured in this segment: Rio Tinto plc (NYSE:RTP), Baoshan Iron and Steel Company Limited (SHA:600019), BHP Billiton (NYSE:BHP), Vale S.A. (NYSE:VALE), Siemens AG (NYSE:SI)
Companies featured in this segment: Valero Energy (NYSE:VLO), Marathon Oil (NYSE:MRO), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), Jacobs Engineering Group (NYSE:JEC), Fluor Corporation (NYSE:FLR), Areva SA (EPA:CEI), El Paso Corporation (NYSE:EP), Rio Tinto plc (NYSE:RTP), BHP Billiton Limited (NYSE:BHP), Baoshan Iron and Steel Company (SHA:600019), ArcelorMittal (NYSE:MT), ABB Limited (NYSE:ABB), Abengoa Solar SA (MCX:ABG), Deutsche Bank AG (NYSE:DB), E.ON AG (OTC:EONGY), Munich Re (BIT:MUV2), RWE AG (OTC:RWEOY), Siemens AG (NYSE:SI), Wisconsin Energy Corporation (NYSE:WEC), Iberdrola SA (OTC:IBDRY), BHP Billiton Limited (NYSE:BHP), China Shenhua Energy Company Limited (SHA:601088), Peabody Energy Corporation (NYSE:BTU), Vale SA (NYSE:VALE), Gazprom OAO (OTC:OGZPY),
Deutsche Bank AG (NYSE:DB), JPMorgan Chase & Company (NYSE:JPM), Rio Tinto plc (NYSE:RTP), Severstal’ OAO (MCX:CHMF), Itochu Corporation (OTC:ITOCY)
Companies featured in this segment: RWE AG (OTC:RWEOY), GDF Suez (EPA:GSZ), Scottish And Southern Energy plc (OTC:SSEZY), RWE AG (OTC:RWEOY) (Essen, Germany), E.ON AG (OTC:EONGY), Electricite de France SA (EPA:EDF), Tata Steel Limited (BSE:500470), NMDC Limited (BSE:526371), Centrica plc (OTC:CPYYY), Scottish and Southern Energy plc (OTC:SSEZY), Siemens AG (NYSE:SI), Albemarle Corporation (NYSE:ALB)
Companies featured in this segment: Baxter International Incorporated (NYSE:BAX), Abbott Laboratories (NYSE:ABT), International Coal Group Incorporated (NYSE:ICO), General Electric Company (NYSE:GE), Siemens AG (NYSE:SI), E.ON AG (OTC:EONGY), Electricite de France SA (EPA:EDF), Power Grid Corporation of India Limited (BSE:532898)
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