Nortel’s fire sale starts today
Posted July 24, 2009on:
Nortel’s CDMA and LTE wireless assets are first up on the block today. The good news for Nortel is 1) There are multiple bidders and 2) The price tag seems to go up every time someone issues a press release.
Nokia Siemens Networks, Research in Motion, Ericsson, and MatlinPatterson have all made offers in some form. NSN put out a “stalking horse” of $650 million and suggested it might raise the offer. RIM got turned away despite offering $1.1 billion, which is now causing some consternation in Canadian government circles since purchase by Sugar Daddy BlackBerry would have kept Nortel assets and jobs all-Canadian. Ericsson has offered up $730 million, just beating MatlinPatterson’s $725 million bid.
It will be interesting to see with who ends up with what when the smoke clears. And RIM’s political posturing is likely to further complicate the process of any winning bid.