Nortel to Divest Assets to C-MAC

Nortel Networks Limited entered into an agreement with C-MAC Network Systems, Inc. on October 2, 2001 to divest certain assets relating to its carrier (DMS) supply chain operations in Raleigh, North Carolina and Monkstown, Ireland to C-MAC. The Raleigh divestiture closed on November 2, 2001 and the Monkstown divestiture closed on November 30, 2001. The total value of the assets divested is approximately US$130 million. As part of the transaction, Nortel and C-MAC also entered into a multi-year integration services agreement pursuant to which C-MAC will manufacture and perform system integration and testing relating to certain Nortel products.
Nortel’s internal legal team was led by Doreen Farthing in Nashville on the divestiture side and by Catherine Grant in Ottawa on the supply contract side. Ogilvy Renault was retained by Nortel to assist in the divestiture and negotiation of the supply contract. Andrew Foti led the Ogilvy Renault team, assisted by Michael Kelly, Cindy Morantz and John Mastoras (employment), Gail Jaffe and Rowena Borenstein.
Davis Polk & Wardwell in New York acted as counsel to C-MAC. The corporate team included Jeffrey Berman, Connie Shoemaker and Matteo Tonello. Ronan Harty provided antitrust advice.