Is Nortel Fishing for New CDMA Bids?

By Mark Evans | Published: July 11, 2009

Wireless Week has an interesting story about a conference call held by Nortel on Thursday, purportedly about the “realities of the current CDMA market”.

However, Wireless Week’s Maisie Ramsay opined that the conference call “sounded suspiciously like a sales pitch for its CDMA assets”, which Nokia Siemens has bid for acquire for $650-million (along with Nortel’s LTE R&D unit).

In the story, ABI Research analyst Nadine Manjaro suggests the real purpose of the conference call was to attract higher bidders for the CDMA business before an auction is hold on July 24.

“The Nortel call today was to tout Nortel’s true value, which will potentially increase bidders,” she told Wireless Week. “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.”

From the outside looking in, it appears Nokia Siemens would get a sweet deal for the CDMA business, which had about $700-million in profits last year on sales of about $2-billion.

Even though sales and profits are expected to sharply decline as the CDMA business loses market share, it is interesting there have been no other bids or even expressions of interest.

However, Bruce Gustafson, Nortel’s VP of strategic marketing, suggested there were offers out there. “If you’re assuming there are no additional bids because there’s no public disclosure, you’d be mistaken,” he said.

Meanwhile, Matlin Patterson, an investment firm that buys distressed assets, is working on a buy-out offer for Nortel with speculation it will sell the enterprise business.

This entry was posted in Financials, Wireless and tagged cdma, matlinpatterson, Nokiasiemens, Nortel, Wireless. Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

FraudEqualsJAIL

NORTEL

Fraud Made Simple
protosphere

“If you’re assuming there are no additional bids because there’s no public disclosure, you’d be mistaken,” he said.

Obviously not worth better than 250 million with 100 financed and another 300 from EDC to make them lucky to even get this 650 mill.

Forget the days of 2B and 700M profits, look at today or more importantly tomorrow.

I would also think Alcatel would be in a better position for LTE than Siemens' gamble. A hoax of hype and fluff continues. Foolishly,

After having trouble making sales so many years they are now having trouble dumping business units, and if that isn't enough, the units are dramatically tanking to further sour anything this Murphy's Law evil empire touches, like Medusa, it turns to stone. Jinxed, cursed, needs a thorough torching and exorcism never to rise from the ashes again.

Thankfully gone yes but not soon enough it seems with the constant bad news hitting the fan right up to the upcoming fraud trials so little mention is made aside from us bellyaching a .curent board member who traded options for cash again has his law firm defending Dunn.
protosphere

“beyond boundaries” (only with the OSC, RCMP beg to differ)
“this is the way” (for Lemmings)
“business made simple” (sell it but loot it first)
zeroman

how the world shared ideas (nothing but rusty old junk)
what do you want the internet to be (we are still getting to web1.0)
NortelTragedy

Hopefully new management will be able to do something better with the CDMA business than current “leadership” – or lack thereof. Fire Richard Lowe, his reports, and their reports for a fresh slate.
yes4aapl

Hopefully new management will be able to do something better
====
re
what new management?
Can you be more specific?
smokeemout

700 plus comments, mostly negative, mostly wrong or completely unprovable, speculative, or just plain nasty
and so, you must be going for a ribbon?
or even more accurately just a 'plant' from a competitor…

here's a sample of fairness….

“After having trouble making sales so many years they are now having trouble dumping business units, and if that isn't enough, the units are dramatically tanking to further sour anything this Murphy's Law evil empire touches, like Medusa, it turns to stone. Jinxed, cursed, needs a thorough torching and exorcism never to rise from the ashes again.”

evans should smoke frauds like you out.
yes4aapl

700 plus comments, mostly negative, mostly wrong
—-
re
I see 775 posts
all of them perfectly on target and Nortel proved him right all the time.
You on the other hand, created your new ID just to post BS.
Soon2BExNortel

July 24th cannot get here soon enough for me. I pray it's NSN that buys CDMA…I'll take an 80% chance of having a job with NSN because I think for those of us in CDMA, there's no way we'll get better odds with anyone else. Good luck to everyone!
roseball

I heard Richard Lowe is going to NSN as well as part of the deal…So I guess no luck on new leadership atleast initially…
broadbandbill

My (703) cents worth: Proto’s style notwithstanding, he has been spot on most of the time. You, on the other hand, are still smoking that Canadian bacon—stop and think about the brain damage you are causing yourself!…–bb
unshackled

smokeemout, I'll be a little more blunt…..you are full of sh*t!

The first time I read proto's posts I have to admit I got headaches because of the bad english. But after getting past that, I actually thought this guy was pretty insightful, and right most of the time. He doesn't sugar-coat and frankly that's the way I prefer it. What's the alternative….Z-speak? yeah right! I think we've all had enough of THAT bs!!!

So yeah, keep your head in the sand and pray you don't get your ass fired in the coming weeks/months
bankrupt_bob

I had to do a double take when I saw this ad in the margins… Chapter 11… Chapter 11…. errrrr….. 11 Chapter ;>)

=====================================================

<<Ads by Google

<<Understand IP Telephony

Free 11 Chapter IP Telephony eBook. Guide to Enterprise Deployment.

ShoreTel.com/11-Chapter-VoIP-eBook >>
NTblinker

He is not the leader of only CDMA, you know? if he goes, then who will lead the other businesses, GSM, IMS, MCS, UMTS, etc…
felixmk

Doesn't surprise me.

1. Richard Lowe's number one priority is always the job security of Richard Lowe. That is why he lasted so long.
2. Sue Spradley was no genius at Nortel and she likely recommended Richard as one of her old cronies. I worked for Sue at various times.
3. NSN has both the good DNA of Nokia and the bad DNA of Siemens so don't expect them to always make good decisions.
Moose_Chaser

Nortel

Business Gone Simple
Lost_NT_stock

I am in Ottawa. Sorry, until today I still don't know whether NSN will take all the CDMA people in Ottawa for this deal. Initially, it was about 800 people and there might be 200 left over. Later, some media reported that it might take all and set it as a research center for wireless network with growth potentail. So I am confused….
Moose_Chaser

Anyone have any insights into what is happening with ENTERPRISE ?

The Choker is not saying … you guys hear anything ?

MC
Moose_Chaser

>> Nortel Political Action Committee <<

Very interesting:

http://www.campaignmoney.com/political/committe…

MC
TongueInCheek

Proto has been correct with a number of his posts, but his style is outrageous. His use of negative adjectives gets crazy at times as he creates suggestions of direct harm to Nortel employees.

This blog is clearly centered on bashing Nortel and often reads like a supermarket tabloid. Where this really crosses the line of basic decency is when there are posts with false accusations or when there are suggestions of threats or harm to be done to Nortel executives.

A healthy debate is fine. Dislike of Nortel executives is fine. I understand that given what has happened.
where_d_everyone_go

Earily silent from Norter Ent and NGS employees I know, I imagine any potential bidders are awaiting what happens with NSN bid July 24.

Sad state of a company where many (most?) employees come to this blog for any news or insight with what is going on.
less

Ronald Alepian said that “no bankruptcy filing is imminent,” but added that the company has engaged advisers to help it chart a way forward. “We remain focused on carrying out the restructuring we outlined to cut costs,” he said.

Alepian said Standard & Poor's in November reaffirmed Nortel's ratings, saying the company “should be able to sustain adequate levels of liquidity in the next 12-18 months” despite difficult market conditions.

Alepian: expert. S&P: experts. There simply must be a vast conspiracy behind NT's Ch 11…

So, uh, wheres the proof? I don't need 700+ links and comments; 12-18 would be enough for me.

Meanwhile, here's a sample of Truth we all acknowledge:

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the nation's most critical information..
less

I occasionally peruse serious periodicals like Forbes, Fortune, Business Week, MotleyFool, Streetinsider, and even Nortel's own blog to find – zip news on Nortel.

Is their ethic: “If you can't say something nice about Nortel…” Is Nortel's recovery so exemplary its too boring to print? Are they nobly helping Nortel concentrate on its business? What?

Any old way, I suspect that when Nortel does finally tank, they'll all probably write a “NT shoulda woulda coulda” eulogy, exposing them as hacks, or worse, competitor shills, eh.

“A little positive cheerleading in the press could've helped Nortel” Yeah, well. shoulda, woulda, coulda…
another_optimist

Since there are rumours of a potential bidder(MP) for the whole company(all Business Units) to out bid the NSN Stalking Horse, I doubt you'll see anything announced for just NGS or ENT until July 24.

Hopefully once the NSN Stalking Horse process is finalized, the Ent Stalking Horse will be announced…hopefully….
scalppeeler

Counterpoints to Proto Points.

Obviously not worth better than 250 million with 100 financed and another 300 from EDC to make them lucky to even get this 650 mill.

CP–>> Sales of over 2 billion and Revenue of 700 million last quarter and you say lucky to get 650 mill. Everyone knows 650 was a steal. This is why you have MP interested. Why don't you just admit it?
The only reason. The only reason the value is so low is for one simple reason. Bankruptcy protection and the uncertainty associated with this bubonic plague term. Even though the business is declining it is still selling. It is still a cash cow. Huge installed base. The reason for the low ball is BP. The reason for BP lies squarely at the feet of four entities. Mike, The Board of Directors (influenced by Manley), Harper/Clement and McGuinty.
It really is that simple.

Forget the days of 2B and 700M profits, look at today or more importantly tomorrow.
CP—>>> The days of 2B sales and 700 millions were not the days of yesterday so to speak. They were last quarter. Current year 2009.

I would also think Alcatel would be in a better position for LTE than Siemens' gamble. A hoax of hype and fluff continues. Foolishly,
CP—>>> AlcatelLucent have more than enough of their own problems. They are in serious trouble. Too big. Too many employees. Too many fingers in too many pies. They will follow the fate of Nortel.

After having trouble making sales so many years they are now having trouble dumping business units, and if that isn't enough, the units are dramatically tanking to further sour anything this Murphy's Law evil empire touches, like Medusa, it turns to stone. Jinxed, cursed, needs a thorough torching and exorcism never to rise from the ashes again.
CP—>> Anybody under Bankruptcy protection has trouble dumping business. It is a fact of life. Check case histories. Noted exceptions are bolt turners at GM who get huge gov't bailouts and emerge with good pensions and job security out of bankruptcy protection.

Thankfully gone yes but not soon enough it seems with the constant bad news hitting the fan right up to the upcoming fraud trials so little mention is made aside from us bellyaching a .curent board member who traded options for cash again has his law firm defending Dunn.
CP–>> You spend every waking minute hoping the business, Name and people associated with Nortel disintegrate. I imagine when it is all said and done you'll have a big party and “revenge is a dish best served cold”. Planning on lots of cold cuts?
AlemdagCaddesi

They got some other ex-GE idiots to run those businesses. Some of the businesses were moved from carrier to something called CV-ASS.
NortelTragedy

So Richard, Bruce, and many other self-described “leaders” and “executives” who use “Office of …” as an email, have conveniently positioned themselves in CDMA, crossing their fingers MP doesn't buy it all, knowing they'll be the first to go.
ntpurgatory

Nortel is not mentioned in these sources because quite frankly, they are now irrelevant. Not news worthy. How much of Circuit City did you hear of in the press once they made it clear they were liquidating?
less

Alas.
Casual_Observer

Yes..he can join Sue Spradley again as part of corporate management. Meet your new bosses, the same as your old bosses.
yes4aapl

Thank you BB
You showed once again that the message is important not the messenger.
yes, Proto is a brave man. He did not hesitate to use his real name and real face to face the evil empire=Nortel in media.
In Proto's case it's so good to see the messenger delivering good message. It's not positive message about Nortel's crooks, but it was the true message and warning for investors and employees.
The message was
Don't trust Nortel's culture of deception and fraud.
Nortel proved him right.
Year after year Nortel reported false numbers, cooked the books, reported false improvements.
How long I fought the double digit growth in 2008?
False! Scam! Fraud!
Go back in time to find it!
http://disqus.com/people/yes4aapl/#main
scalppeeler

Are you saying he used his real name on this board and it was confirmed?
Is he an ex nortel employee?
Did he lose alot of money in the stock?
What's his beef?
There's gotta be something?
yes4aapl

you bet
yes4aapl

add
Proto is like Robert Verdun but stronger and more dedicated to Nortel's cause….
http://www.lightreading.com/document.asp?doc_id…
protosphere

The numbers are not over “last quarter” but year, read the topic again.

This is also not what they generate today, or more importantly tomorrow. This cash cow (was 80-90% EBT), has “gone out to pasture” as “everyone knows” in the article reiterated here many times, so why do you change the facts to senselessly antagonize.

As a greater point of insight, if it was such a “steal”, why weren't more or higher bids rumored than just NSN with almost half this 650M price in EDC welfare (300M).

Bankruptcy is not the cause than result of their insurmountable woes after burning company paper. They don't even pay their employees they gag and fire as they loot the corpse.

Frauds deserve exposure and if you feel this is revenge, bon appetit as there is more to come at the upcoming trials. So stick your cold cuts in your ear and don't try to feed us a thousand flies just can't be wrong.
protosphere

Outrageous?!

I have never threatened any executive or suggested “direct harm to any Nortel employees”. This is a shameless and cowardly lie in slander.

I take pride in the degree of human compassion I idealize to an eccentric degree than remotely entertain doing harm to my fellow man. Good heavens, what's next?

May I suggest lies and fraud are outrageous instead.

How many of my posts have been correct? What percentage, and how greatly did they deviate from contemporary thought to deserve the merit of continued defamation and personal attacks over the years, all the way down… when so many thought bankruptcy was crazy

What I think is outrageous are lies with intent, patronizing to personally attack, totalitarian ploys to gag the truth, stalking, insults, fabricating, antagonizing, etc. these are outrageous than painstaking honesty, whether the hidden news is good or not.

My goodness =)
scalppeeler

You didn't answer the questions.
Validate.
scalppeeler

The numbers are not over “last quarter” but year, read the topic again.
—-Are you feeling okay. What is the difference between last quarter and last year. Last year was only six months ago? Things have not changed much. Recession is still here. The business is making money. The business if bought by NSN will be a steal. Everyone knows it. It has become a steal due to BP. Wake up Man—

This is also not what they generate today, or more importantly tomorrow. This cash cow (was 80-90% EBT), has “gone out to pasture” as “everyone knows” in the article reiterated here many times, so why do you change the facts to senselessly antagonize.
—Wait and see what comes out of Q2. They dropped quarter over quarter but they still pulled in more money than any other Nortel LOB. Did wireless not have revenues of 700 million last quarter while they were in BP? What were the exact numbers? Do you read?—

As a greater point of insight, if it was such a “steal”, why weren't more or higher bids rumored than just NSN with almost half this 650M price in EDC welfare (300M).
—I already told you. You don't listen. BP lowballed the bids. Most did not want to get their hands involved due to uncertainty. Nothing to do with how the business was doing. Your pal mcguinty is one of the reasons BP happened—-

Bankruptcy is not the cause than result of their insurmountable woes after burning company paper. They don't even pay their employees they gag and fire as they loot the corpse.
—-Bankruptcy protection IS the cause. Think about it. It scares potential buyers and customers. It is only human to be reticent and hesitate in these circumstances—

Frauds deserve exposure and if you feel this is revenge, bon appetit as there is more to come at the upcoming trials. So stick your cold cuts in your ear and don't try to feed us a thousand flies just can't be wrong.
–This is your problem and this is why I am sure you have some hidden agenda or were mistreated by Nortel. This isn't about Fraud. It is about BP. It is about thousands of people losing their jobs. It is about people losing severance. Nobody cares how or why it happened. It happened. The person who has lost their job or will lose their job doesn't care how it happened. It happened. It's done. Water under the bridge. You seem intent on blaming, living in the past and most of all pounding the dead horse. Just like a nag, bitter old woman.
protosphere

“—-Are you feeling okay. What is the difference between last quarter and last year. “

You are not worth debating to ask such a thing,
protosphere

Does anyone expect business to magically come back under the Nortel name?

Who will give Nortel money now as they try and sell the whole farm as soon as they can.

I also have no faith in existing NSN gamble sweetened by almost half in government welfare to buy this catalyzing tanker. I also suspect Matlin Patterson would lose even more feeding this insolvent white elephant let alone the whole thing, that's funny.

Why Matlin Patetrson get involved to begin with? Why wait so long? Are they trying to salvage their interest or are they bluffing in desperation with impatience drawing to an anxious close.
protosphere

“good luck” makes me suspect you are even an employee with this ID too

It's a band aid… there are better telecoms to work with than gamble longer, and the good guys already know this
protosphere

“don't expect them to always make good decisions”

first bad decision being buying this EDC blue light special =)
broadbandbill

Small correction: Nortel did NOT prove Proto right; Nortel's BoD and management proved Proto right!

In my world there is a huge difference between Nortel (the innovator) and Nortel’s management (the deliberator) Bravo Proto, keep it up…–bb
Soon2BExNortel

I think you're asking if I'm a current employee. Yes, I am. I work in the tower in Richardson. As proof, last week an e-mail was sent out stating that the fire alarm system in the tower would be tested this weekend.

Perhaps you're right and NSN is a band aid. Obviously if employees that go to NSN hope to hang on, they need to pray that LTE really takes off. I think most of us would rather go to NSN for awhile & then get laid off with severance in a better economy than get laid off right now without severance. I don't think there's much of a chance of another buyer wanting 80% of the CDMA employees so, from an employee standpoint, I think this is the best outcome. My 2 cents.
Another_Nortel_Watcher

It's not because of the name, but yes, I think under the right circumstances Nortel could still turn around. It would likely begin a new life as the top of the tier-2 players instead of a member of the tier-1 vendor club, but that could be grown into something great if the conditions were right.

For starters, the board and the existing executives need to be purged. Almost all of the executives, at least two levels down. The leadership structure needs to be rebuilt with top talent, not B-grade GEniuses, their sycophants, and Nortel left-overs.

It's possible, but very unlikely to happen. Consider though, how much the other 2nd tier vendors (Sonus, Genband, MetaSwitch, Tekelec, etc.) would like to have a lot of Nortel's assets, mostly platforms and installed base.

Matlin Patterson might be the ideal kind of acquirer because it would take brutal restructuring to get Nortel right-side-up again and MP doesn't have a reputation for nostalgic compassion.
NTInfidel

That is completely naive. Firing the top two layers of executives might be attractive punishment for those who put up with them, but it would throw the remains deeper into chaos and would not reassure customers.

Then what? There is no more room to drastically restructure as all divisions are teetering on collapse.

Short of a time machine, there is no putting humpty dumpty back together again. There is no going forward with Nortel.
NTblinker

They might wait for so long to see the light at the end of the tunnel of the economy, And waited so long to see Mike Z and his team finished cost reductioning of quarters 4Q08 and 1Q09 and also waited for so long to see that minumum one unit was for formally in sale by the control of a court judge in an auction. Due to they are relating only with the distressed companies, i can say if i had 9 B dollars i also involve in that process by june or july. i pray that by August there will be a new start for the last rounds of restructuring of Nortel whether new or the current one.
less

One of them tower people, eh. Call me TIC, but I'll need more proof than a mere fire alarm. What key is the acoustic guitar in the food court showcase?
bankrupt_bob

Good grief! I was going to suggest Phoenixtel as a name for any new company that might arise from the ashes of the NT debacle, but it's already been taken!

http://phoenix-tel.com/

I love their motto!

“Intelligence via diversification.”
Another_Nortel_Watcher

NTInfidel – I did not say the top two levels should be fired on day one, however I do suggest that most of the top level go fairly close to day one. I believe a new Nortel would do just fine without any help from MZ, Choker, Lowe, Morin, Riedel, Carey, & Flanagan. I don't think they would be missed on the second day they were gone and in fact I think it would cause a fresh wave of energy across the company. I also think that – done right – it would definitely reassure customers.

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