Spotlight: Is Huawei being blocked from Nortel deal?

Nortel Networks is still trying to sell its Metro Ethernet division, with Radware reportedly emerging as the latest vendor contending to buy the group. Several companies have been mentioned as likely candidates to acquire the Nortel unit, but there has been no deal yet. Some industry watchers have speculated that the economic conditions aren't helping, but now Forbes reports that the most interested possible buyer thus far, China's Huawei Technologies, may have been kept from making the deal by concerns Nortel customers supposedly had about security and Huawei's enigmatic ties to the Chinese government.

Huawei has been mentioned by Light Reading in the past as the likely match for Nortel's Ethernet business, and while Nortel would have much to gain from any cash the deal would bring in (possibly as much as $400 million?), Huawei also would have much to gain from the stronger foothold the division would give it in North America. Concerns of security and government affiliation caused another potential Huawei deal-the proposed acquisition of 3Com in partnership with Bain Capital-to fall apart. How much longer can they keep China's fierce vendor at bay?

For more:
- Forbes has this report

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