Tom Sweeney

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Posts Tagged ‘MatlinPatterson’

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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