Doug on IP Comm – An independent voice on VoIP, telecom, and IP Communication

Is Nortel ready to fall lower?

Posted on: July 13, 2009

Last week, Nortel was too busy pimping its own assets rather than talking about the future of the company, reports Wireless Week. With July 21 looming as the final date to bid on Nortel assets, a little panic may be setting in.

A Nortel event last week was supposed to be a discussion on the “realities of the current CDMA market,” but after the presentation ABI Research analyst Nadine Manjaro asked if the company had dragged her in for a sales pitch.    Manjaro believes that Nortel is “rushing” to get higher bidder in play.

Currently, the only public bid is a $650 million offer from Nokia Siemens Networks, with “vulture capitalist” firm and Nortel creditor MatlinPatterson also making noises it’s going to make a bid for the whole company.  Nortel officials are playing cute, hinting of other bidders, but if that’s so, why is the company trying to pump the future of its assets?

We’ll all find out more at the end of the month, when the identities of the bidders will become public. At this rate, MetaSwitch might as well throw in a low-ball bid for Nortel’s VoIP assets just to make ’em sweat.

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NSN’s Low Bid Causing Strain at Nortel? By Maisie Ramsay WirelessWeek – July 10, 2009

The deadline to bid on Nortel’s assets is less than three weeks away, and it appears the company is starting to sweat a little. Yesterday, Nortel held an hour-long conference that sounded suspiciously like a sales pitch for its CDMA assets. The company’s press invitation for the conference had touted the call as a discussion of the “realities of the current CDMA market” within the context of Nortel’s pending sale of its wireless assets. But the company spent the bulk of the call pointing out just how monetizable its assets were. By the end of it, ABI Research analyst Nadine Manjaro piped up to ask if the company had dragged her there for a sales pitch. Nortel representatives replied, in part, that the call would help build sales momentum for the company that eventually acquires it. Manjaro has a different take: She thinks Nortel is rushing to get higher bidders in before the company goes on the auction block on July 24. “The Nortel call today was to tout Nortel’s true value, which will potentially increase bidders,” she says. “All of the recent press has been more on the negative side so it was an effort to say that even though the company is going through bankruptcy, the assets are still valuable.” So far, the only public bid has been a paltry $650 million from Nokia Siemens Networks. Nortel creditor MatlinPatterson also has said it will bid on the company, but it has yet to submit a proposal. Despite the conference call’s note of desperation, Nortel’s wireless marketing vice president Bruce Gustafson hinted to Wireless Week that there were more offers in the wings. “If you’re assuming there are no additional bids because there’s no public disclosure, you’d be mistaken,” he said, declining to name other bidders. The industry may have to wait until the end of the month to see if Nortel’s last-minute sales pitch was effective. On July 21, all bids for the company have to be submitted and the identities of the bidders will become public. Nortel will be at auction three days later, and its new owner will emerge once approval is given by the bankruptcy court.

More FirstNews 07/10/09:
•  NSN’s Low Bid Causing Strain at Nortel?
•  King of Pop Drives Mobile TV Views
•  CTIA Filing Highlights Growth, Need for More Sites
•  Spectrum Inventory Bill Progresses
•  Week in Review … July 6-10
•  WW Named the Official Print Show Daily for CTIA IT & E
•  Google CEO: New Operating System Changes the Game
•  FirstNews Briefs for July 10, 2009

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