Tom Sweeney

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Nortel to auction carrier networks division without initial bid

Posted by sweens on September 22, 2009


By Ottawa Business Journal Staff

Tue, Sep 22, 2009 3:00 PM EST

Nortel Networks Corp. has decided to auction off its carrier networks business and, unlike its previous division sales, is doing it without a “stalking horse” bidder this time.

The ailing telecom firm said its principal operating subsidiary, Nortel Networks Ltd. and its U.S. subsidiary Nortel Networks Inc. are planning to sell by auction the assets of its carrier networks division associated with the development of next-generation packet core network components.

The assets consist of software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, and include relevant non-patent intellectual property, equipment and other related tangible assets, the company said.

The purchaser will likely also get a non-exclusive licence of relevant patent intellectual property, Nortel added in its release.

The announcement marks the third Nortel business to be sold off since the company filed for bankruptcy protection in early 2009. However, this auction process is slightly different from the previous deals as it does not include an initial “stalking horse” bidder with a firm offer.

Bids will be accepted for the carrier networks business until the deadline of Oct. 16, with the auction to take place two weeks later.

The federal government on Sept. 17 gave the green light to the $1.13-billion sale of Nortel’s wireless business to Ericsson, and the company is now awaiting the final approvals for the $900-million sale of its enterprise solutions division to auction winner Avaya, which was also the “stalking horse” bidder for the business.

http://www.ottawabusinessjournal.com/295481941870324.php

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One Response to “Nortel to auction carrier networks division without initial bid”

  1. Interesting issue, didn’t thought reading this was going to be so amazing when I read the title with link.

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