Ericsson has made an eleventh hour bid to buy the assets of bankrupt Riverstone Networks.
Last month, Lucent made the first move to buy the assets of Riverstone for $170m (£100m), but Ericsson has now offered $178m. The pair will face off later today at a New York auction for the company.
Both want Riverstone to help bolster their network infrastructure equipment portfolio.
Riverstone is a specialist in Ethernet hardware that can be used in carrier networks. This market sector is growing as service providers increasingly opt for Ethernet-based systems, which are seen as more flexible than traditional carrier network solutions.
Ericsson is on an expansion strategy after recently acquiring the majority of Marconi’s network hardware assets.