Avaya Negotiating Possible Buyout

Avaya is negotiating with private equity and strategic bidders about selling all or part of the company, according to a media report in the Wall Street Journal yesterday.

The Wall Street Journal said would-be buyers include private equity firms attracted to the $6 billion company’s cash flow and low debt. There’s also interest from network makers Cisco Systems and Nortel Networks.

When contacted by The Associated Press on Monday, Avaya representatives declined to comment on the report, saying it’s company policy not to comment on “speculation and rumours.”

Avaya has already postponed an analyst day meeting scheduled for May 31, and a new date for that session hasn’t been released, a signal to some analysts that it may be in buyout talks.

According to The Wall Street Journal, Avaya is discussing a leveraged buyout plan with the private equity firm Silver Lake.

Avaya also reportedly discussed a deal with Nortel earlier this month. Momentum slowed on the talks when the two companies couldn’t agree on a price or whether Nortel should pay with cash or stock, but a deal might still happen, people familiar with the situation told The Wall Street Journal.

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