Tom Sweeney

It's a coming of age tale….

Posts Tagged ‘Ericsson’

Nortel sells its joint venture with LG Electronics for US$242M

Posted by sweens on April 29, 2010

Another piece of the former Nortel Networks empire has been sold, with the Canadian company’s interest in a Korean operation going to LM Ericsson for US$242 million.

Nortel announced the sale of its 50 per cent plus one share interest in LG-Nortel Co. Ltd., the company’s joint Korean venture with LG Electronics Inc., late Tuesday.

The agreement marks the sale of one of only a few remaining assets of Nortel, formerly Canada’s biggest information technology company and once a leading global vendor of telecommunications equipment.

Still remaining are a variety of patents and Nortel’s Passport division, which provides non-optical equipment and was a piece of the Metro Ethernet Networks division that did not sell to Ciena Corp. in a US$521-million transaction last year.

A spokeswoman for Nortel said it’s still unclear what will happen to the remaining assets, which would also include potential tax-loss recoveries that could be used by a profitable company.

“Nortel will assess other restructuring alternatives for its remaining businesses in the event it is unable to maximize value through sales,” said Nortel representative Jamie Moody in an email.

LG-Nortel was established in 2005 to provide telecommunications equipment and network solutions to customers in Korea and around the world.

The sale is subject to approval of the Ontario Superior Court of Justice and must meet certain regulatory conditions.

Earlier this month the financially battered Nortel received another extension to its creditor protection to the end of July, in order to give the fallen Canadian technology company more time to complete a court-supervised restructuring.

The company filed for court protection in the United States, Canada and other jurisdictions in January 2009, and has since sold most of its major operations to former rivals.

At its peak during the 1999-2000 technology boom, Nortel was Canada’s most valuable company after the telecom equipment maker went through several years of rapid expansion and diversification funded by debt and stock sales.

But starting in 2001 Nortel suffered a precipitous decline in sales, due to a combination of factors including the merger or demise of many of its customers, economic slowdowns and an accounting scandal.

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The end of an era…

Posted by sweens on March 31, 2010

Yesterday marked the end of an era for me. I rushed out of work in order to get to my hockey game on time. I took the usual drive down Carling Avenue and made the right hand turn onto Moodie Drive so I could catch the 417. Traffic seemed slower then normal though on Moodie and as I slowly moved up the road I saw what the hold up was. A large utility truck was parked on the right side with a crane adjusting the old Nortel sign.

Unfortunately they were not performing repairs on this sign. They were taking it down. The sign which for so many years has said Nortel was no longer there. It has been replaced by several smaller signs representing the companies that have bought divisions of Nortel like Ericsson and Avaya.

This to me was truly a symbolic end to the once upon a time Telecomm giant; a building, campus and culture known to many in the Ottawa area as a significant landmark in the city’s West end.

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News Update: Ericsson dials Nortel auction up with $730M bid

Posted by sweens on July 24, 2009

News Story
Ericsson dials Nortel auction up with $730M bid
By Ottawa Business Journal Staff
Thu, Jul 23, 2009 9:00 AM EST

Swedish telecom giant Ericsson has jumped into the battle for Nortel Networks Corp.’s wireless businesses, topping the high bidder – private equity firm MatlinPatterson – by $5 million.

Ericsson on Tuesday submitted a US$730-million bid for Nortel’s CDMA and LTE, short for code-division multiple access and long-term evolution technology, according to a Globe and Mail report that cited sources familiar with the bidding process.

Besides besting the $725-million proposal earlier announced by MatlinPatterson, which has said it intends to build a stand-alone business based on Nortel’s wireless assets, Ericsson’s offer is also higher than the $650-million “stalking horse” bid made back in June by Nokia Siemens Networks.

Research In Motion Ltd. (TSX:RIM) is also trying to make a play for the wireless division along with other unspecified Nortel businesses, although Nortel earlier rejected its bid as RIM had not submitted the offer along court-approved guidelines.

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