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Flextronics is buying Nortel assets, and Fenwick & West is helping write up the shopping list. Flextronics Intl. is taking over certain optical, wireless and enterprise manufacturing operations of Nortel Networks Corp. in a deal announced June 29. Singapore-based Flextronics will pay the telecom equipment maker between $675 million and $725 million for its systems-integration activities, final assembly, testing and repair operations along with the management of the related supply chain and suppliers. “Deciding which assets to transfer and exactly how to transfer each asset was a challenge,” said partner David Michaels, who led Fenwick’s team. Under the four-year manufacturing agreement, Flextronics will take over Nortel’s production operations in Canada, Brazil, France and Northern Ireland. “Some of locations are being leased for three-year periods. Some are being licensed for shorter periods and one facility is being sold permanently,” Michaels added. About 2,500 Nortel employees will be offered work with Flextronics. Negotiations took place over the course of several weeks in Ontario, Canada, where Nortel is based. Flextronics will make cash payments to Nortel of approximately $75 million in the fourth quarter of 2004 and installment payments of approximately $600 million to $650 million throughout 2005. The staggered closing adds an element of risk. “The world can change in a year,” Michaels said. But, he added, the two companies are now strategic partners who are invested in seeing the deal proceed smoothly. “That puts a different perspective on a lot of issues that are hotly negotiated,” he said. “You can’t burn any bridges.” Michaels’ team included partners Stephen Gillespie and Mark Ostrau. – Adrienne Sanders LEGAL EYE FOR THE DESIGN GUY Design Within Reach Inc. made a splashy entrance on the Nasdaq board last week. After pricing its initial public offering at $12 per share, the upscale furniture company saw its stock soar to $15.90. The company’s prospectus included a photo display of its wares, proudly noting that they have been featured on the television show “Queer Eye for the Straight Guy.” “I think it’s a very interesting company with a very bright future,” said David Hahn, a partner in Latham & Watkins’ San Diego office who handled the company’s IPO. Design Within Reach and its shareholders offered 4.1 million shares of common stock. The offering was made through an underwriting syndicate led by CIBC World Markets Corp., William Blair & Co. and SG Cowen & Co. The San Francisco-based company founded by designer Rob Forbes has been selling a broad mix of modern furnishings since 1999. It now has 25 studios that peddle everything from Eames plywood chairs to cowhide rugs to Nelson marshmallow sofas. In 2003, the company had net sales of $81.1 million. Hahn’s team on the IPO included associates Marc Nemer and Tamara Porter. William Brentani, a partner in Simpson Thacher & Bartlett’s Palo Alto office, represented the underwriters. Associate Rebecca Boyden assisted on the deal. Brenda Sandburg

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