Nortel is delaying the auction of its Optical Networking and Carrier Ethernet Unit in hopes of attracting more bids.
U.S.-based Ciena has already bid $521 million for the unit, which employed about 1,000 workers in Ottawa as of this summer. Nortel will not confirm any current employment figures.
The auction was scheduled to happen on Friday. However, Nortel is moving the deadline for bids to next Tuesday in hopes of attracting other offers.
If Ciena wins the go-ahead to buy the unit, which is perhaps one of Nortel's strongest divisions, it has promised to expand its Ottawa operations, making it Ciena's global centre of excellence for research in optical networks.
There is currently no word on when an auction for the unit might take place. Nortel is expected to provide an update on the auction process next week.
Officials from Ciena refused comment on this matter.
Ericsson aquisition official
Meanwhile, 800 people in Ottawa officially switched employers Friday when Nortel completed its handover of its wireless unit to Sony Ericsson.
Ericsson has been in Canada for more than 20 years, mainly in Montreal -- where the London, England-based giant has about 2,000 people in the branch office.
"The United States is the most important telecom market in the world, and this deal will strengthen our position," said incoming chief executive Hans Vestberg in a statement.
Vestberg said he was particularly impressed with the next-generation wireless gear that Nortel employees have been working on, also known as Long-Term Enterprise (LTE).
Now that the acquisition is complete, North America will be Ericsson's largest sales region and the company will be better able to adapt wireless networks to LTE now that it has a substantial presence on the continent.
With a report from CTV Ottawa's Paul Brent
