RIM Wants In On Nortel’s Wireless Auction

There is something terribly wrong when a company is restricted from biding for more then one piece of a company. How does they enhance the value for creditors? How can a judge and court Monitor and creditor committee not object to such a restriction. Not allowing RIM to be a qualified bidder is outrageous. How can they turn away a $1.1 billion bid and be willing to accept a $650M bid?There is something that sinks very badly and I think it it MZ and the BOD I smell. They fix appears to be in.

There must be more to this than meets the eye. Restriction from bidding on other parts of the company could not be a true condition that the courts would allow. It would be counter-productive to “maximizing” shareholder value. RIM must have wanted some additional condition that could not be tied to the current stalking horse bid conditions. Hopeful someone else here has more insight.

Balsillie can still buy Enterprise if he wants. We have a hockey arena here in Belleville he can drop his NHL team into as well.

http://www.reuters.com/article/rbssTechMediaTel…

Looks like RIM wanted the Intellectual Property assets in addition to CDMA/LTE assets. The IP assets would have helped them in the upcoming LTE terminal pricing since their outflow due to royalty payments would be proportionally less.

Its interesting to know that RIM execs have the confidence that they could take on the CDMA/LTE wireless infrastructure business and successfuly compete against the likes of Ericsson, NSN, ALU etc. Would this be practical though? Chances are perhaps 50/50, and in any case they cant screw up more than Mike Z and his stupid execs & BOD.

Something Stinks in Denmark

By law under bankruptcy , it is up to the creditors to determine what Nortel assets can be sold for and not Nortel. Creditors wanted to see a plan before bonuses were approved and now there is no plan.

Why are debtors victim of court bids now than the highest one they should be entitled to by law?

It is also ironic other that the government hand a NSN almost a third of a cool billion bucks to finance a sale yet Nortel gets to imposes restrictions on a higher bid, and a Canadian bid at that

The Notell liars reiterated how they want to maintain value as often as they reiterated 3 to 5 year turnaround, do they ever tell the truth? What value for less?

They now even say they are being transparent to their stalking horse prospects like this is something out of the ordinary or privileged than an outright expectation in good faith. They are funny clowns.

Where is the carrot or fear as fraud trials loom and many are still there to avoid more. Ironically trade options gambkle for cash again, voted to keep fraud bonuses years ago before followijng revisions. They even increasing lawsuit insurance recently who's premiums get paid first, before creditors, like their lawyers fees. They were even forced to attend a government hot seat inquiry on how they could cut severances while paying bonuses. It is so endless. it sure seems like everything they do is underhanded or a lie.

They have close relationships with big business fiance and rewarded themselves for printing billions in Nortel paper, close relationships with regulating authorities and people in government. Even an ex finance minister is a board member and who's law firm defends Dunn. and for EDC to finance $300M with a company that is not Canadian while government's hands are tied to taking a lower bid..confusing. ….it stinks

RIM also got fined many millions for backdating options and Nortel nothing for the largest fraud in Canada. Why is RIM is suppressed by OSC and Nortel can do what ever it wants?

There must be a reason for them to favor the lower bid, and why isn't this reason at least transparent.

something stinks in Denmark alright, too obvious and too endless… Nortel always did disappoint.

how long can these guys continue this without any threat over their head.

This is insane. I'd sure like to see an explanation for it, if there is one.

We'd have to add about 15000 more seats to that arena.

way to go RIM

“RIM said in its statement it sought to be considered as a qualified bidder in Nortel's auction for the wireless business, but was told it could be qualified only if it pledged not to submit offers for other Nortel assets for a year.”

The court or the CDN gov't must re-assess the rules for the sale of Nortel divisions if it is true that Nortel blocked a higher bid.

It just doesn't not make any sense for a higher bid to be rejected!!! CHANGE THE RULES if the rules are bad then!!!

It seems like the is a co-ordinated effort to steal assets from Nortel by selling it very cheap.

there have been others looking at small portions. they were all turned away.

A little too late I'm afraid, they are pushing this thru.

What makes this more sickening is that there is a high ranking politician on the BOD, MR MANLEY.

You gotta wonder if manley is a Canadian in name only!

I suspect 1.1B is RIMs upper threshold of their bid, and that NSN/MP imminent bidding war would top that.

Did you expect any different? It is an interesting turn of events.. but I for one, am not in the least bit surprised. It would be a shocker if they proceeded with any normalcy, dignity, or morality at all at this point. I bet there is more, way more, to come.

one question. why can the pension fund not be used to raise money and buyout nortel or units? would that not help pensioners have some probability of seeing their money.

or is this too much common sense.

I disagree, RIM has not actually made any bids. The bid process has not begun yet. They have been denied the opportunity to be a qualified bidder for CMDA/LTE because they want to bid on IP property and would be denied if they bid on this sale.

It is likely NSN lawyers through in this term on the staking horse to protect there bid. Likely no one actually caught this limitation in the terms before the bidding terms were approved by the courts.

No that they are approved they will not change unless the gov't steps in to block the sale and this is not likely going to happen.

The only way to steal assets legally is to do just what NT's management is doing. Get the court to put crazy conditions on any sale of assets.

Do you really think the foreign ownership will have a priority to keep jobs in Canada or to save pensions. They will say the do do appeas the sheeple but I'm afarid money talks louder than words.

http://www.theglobeandmail.com/news/national/ri…

>>>>Nortel issued a statement late last night saying it is disappointed RIM decided to issue a press release regarding the auction. It pointed out that on June 30, the courts established bidding procedures, and “RIM did not object to the approval of these procedures.”

Interesting, looks like the weird clause not allowing a company to bid on other assets for one year is in the court approved bidding procedures!!!!

Now that the cats out of the bag. I had seen two parties on campus during the last few months doing their Due Diligence. But I wasn't going reveal RIMs interest as it was a secret, but we were wondering what happened to RIM.

I guess now we know.

We will probably never get the whole story on this one.

What does this do to MPs attempt to acquire all of Nortel if there is a clause that you can't bid on another piece if you buy wireless?

Why would the creditors agree to such a clause?

ME,

an article on corporate thievery please. this is bloody ridiculous. why would there be rules on what to buy and not to buy. if a party is willing to bid higher for more assets what is the problem.

there is definitely something wrong. it stinks a lot, even more because it is under the court monitor and court supervision.

if nortel is choosing bidders on the basis of exec jobs, salaries, transition then the process is flawed. and I think this under the table corrupt dealing is definitely going on.

THIS SHOULD TRIGGER AN RCMP INVESTIGATION.
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they are also paying 50% more than NSN. so even with your argument, the creitor pool would still be taken care off.

as a creditor would you see 650 million or 1.1 billion. if you cared about 1.1 billion then would you not question the court monitor.

As said above, it is because NSN bid does not include IP property, only CDMA and LTE assets. The IP alone is valued at higher that 1.1 billion altogether. So RIM was also making an offer on the cheap. The actual Nortel employees will be better off with NSN…

“Interesting, looks like the weird clause not allowing a company to bid on other assets for one year is in the court approved bidding procedures!!!!”
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re
And if it is, you can't blame anyone now. Why would the court approve this?

Did you expect any different? It is an interesting turn of events.. but I for one, am not in the least bit surprised. It would be a shocker if they proceeded with any normalcy, dignity, or morality at all at this point. I bet there is more, way more, to come.

he should change his name. he does not even have the balls to stand up for Canada. he is just the same. out for himself.

I hope, wish and pray that a bidding war starts. if it must end in foreign hands then let them pay big for it. NSN can fork up 1.1 billion for the unit. or let another canadian firm “fin-ish” them a pun on fins from finland.