Avaya could be up for sale, reports say

NEW YORK (CNNMoney.com) -- Telecommunications equipment maker Avaya may be exploring the sale of part or all of the company, according to reports published Tuesday.

The Basking Ridge, N.J.-based company, which has a market capitalization of $6.18 billion, is said to be in talks with private equity and strategic bidders, The Wall Street Journal reported.

Private equity firm Silver Lake Partners may launch a leveraged-buyout plan, the paper said.

The Journal said private equity firms are attracted to the company because it has $829 million in cash and no debt, generates steady cash flow and about half of Avaya's revenue comes from long-term service contracts.

Rivals Cisco (Charts, Fortune 500) and Nortel (Charts) are among the companies interested in the possible bid, according to The New York Times.

Avaya recently held talks with Nortel about a possible deal, but an agreed price could not be reached, the Journal said.

Avaya and Nortel are still in talks and a deal could still materialize, the Journal said.

A spokeswoman did not return a call or e-mail message seeking comment, the Times said.

Shares of Avaya (Charts, Fortune 500) closed up 1.6 percent to $13.67 on the New York Stock Exchange Friday. Shares rose 3 percent to $14.09 in extended trading.