RIM Still Hunting for Nortel

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I really don't see RIM/Government intervention happening here.

RIM for all the rabble rousing, chose not to enter the bidding because they didn't want to sign the standard NDA/Standstill papers.

There 1.1Billion number waved around wasn't just for the CDMA and LTE business that sold, but also for certain other assets, like a pool of patents by media accounts. So really their CDMA/LTE bid would likely have been low even if participating.

This kind of detail might be regularly missed by media outlets, but it won't go anywhere with a judge.

Government intervention will happen if E// doesn't prove net benefit to Canada. If the Industry minister truly cares about Canadians, then E// may have to agree to some sort of formula for maintaining jobs/focused centers of R&D in Canada, to satisfy the "net benefit" point. Wishful thinking?

E// supporting jobs for 12 months
NSN was really weak in the bidding and showed weakness of the business /LTE/
E// is much stronger so Nortel's employees can do much better in that deal.
and
message for
NTInfidel, you will benefit from E// if you are for real but most of us on this Blog think you are NSN employee_manager.

Why does E/// need to "prove net benefit to Canada", unless it takes financing $$$ from EDC? If Nortel was so damn important, why did they let it flounder and ultimately fail? They had the opportunity to step in a clean house (read: GM and Wagoner) long ago. That said, I do agree that E/// shouldn't get a dime of financing from Canada, unless they agree to keep jobs there, of course.

All I can think about is how long this scenario would take to fix. Ericsson can't be all that desperate to accept too many concessions.

Likely the truth but not the kind of stuff that the crowd here is interested in discussing.

Mike did just fine without us, and Canada will survive, too.

Do you think RIM had this scenario penciled as a strategy after they were barred from the auction? I never got the feeling that they were out of the picture, even after the auction was over.
Did anyone expect Ericsson to ask EDC for the money they were going to give NSN, or was that a complete surprise?

If RIM wanted it badly, why did not they start the stalking Horse? what is wrong with this company? Do they know what they want? Sounds like John and Clarence Chandran are running RIM.

John and Clarence would have bid $4B if they were running RIM today. They can't run a Dairy Queen.

http://www.thestar.com/business/article/672371

Earlier today, the Swedish company Ericsson said it is confident that its $1.13 billion (U.S.) purchase of Nortel Networks Corp.'s wireless business will be completed, and is planning to ask Ottawa to help finance the deal.

"We will sit down with the Canadian government and see if we can get financing from them."

Hans Vestberg, Ericsson's chief financial officer, said that he expects the purchase to be approved by bankruptcy courts and receive the necessary regulatory approvals.

Ericsson's purchase of the Nortel division, which generated about $2 billion in revenue last year, is scheduled to be approved by U.S. and Canadian bankruptcy courts tomorrow during a joint hearing.

"The government has the authority and responsibility to protect vital Canadian interests," Nortel said in a statement that echoed overtures last week from RIM co-CEO Jim Balsillie.

_____________________________________________________

Ericson wants government welfare like NSN got approved for when times seemed more desperate?
Screw Ericsson, no more taxdpayers money to export jobs or to a foreign firm, NSN was stupid enough, let alone Nortel this long

OSC and EDC people Nortel insiders hold close relationships with should seek employment elswhere!

how dumb? they are asking the government now. why would government give anything now. no negotiating power. what if government walks away. would Ericsson walk away too?

From The Toronto Star

http://www.thestar.com/business/article/672371
---------------------------------------------------------------------------------------------------------------------
He also said that, while the particulars of how the deal will be financed have yet to be worked out, the Swedish telecom equipment giant is planning to explore the possibility of a loan from Export Development Canada.

"We will sit down with the Canadian government and see if we can get financing from them."

-------------------------------------------------------------------------------------------------------

Now let see if we can blackmail the EDC into keeping jobs in Canada now that we stole the company by getting $300Million out of them.

E// has smart guys running this company. Only if Zman and he boys were this smart we would not be in bankruptcy. See Mike this is how you get money out of the Canadian gov't you don't go bagging for money, you go there threatening!

man-O- man is it ever hitting the fan now... sheese

why didn't the government intervene sooner, as well as RIM playing such a risky game of chess procrastinating to the point of an anticipated winner of these insider players in every one of the bids

...now I stress "anticipated" as crap hitting the fan like never before is an understatement

fascinating ...but I am questioning whether the deal will actually go through at this point with a greater concern over the fallout of a broken bid

I bet this will keep diligent litigation pros on both sides of the border very, very busy indeed =)

I do not think the underhanded contradicting incompetents can damage US/Cdn relations and that this is no time for Canada to pussy foot around

Move fast and now, in advance, strike it down in favor of a Canadian bidder or get off the pot, which is hard to do without showing a bias to the international community... like trying to take back our 407 from the crazy Spainards ...thanks Nortel for another fine mess... even in fire sale with ...of course with more bone us...

Sell it to RIM for $1.14B case closed and eat crow in humiliation, what can I say... what would you do?

I don't know.
I just don't think the canadian politicans have the cajones to as spike lee would say, "Do the Right Thing". I think it is all posturing and bloviating.
We'll see soon enough.

I wonder what this means for our outsourced work on CDMA:
http://www.ottawacitizen.com/technology/plans+consolidate+Nortel+Ottawa+Montreal+operations+Ericsson/1833270/story.html

"The future of a Nortel wireless research operation in China is in doubt. Nortel moved significant research support of older wireless technology to China. Ericsson bought only the Nortel wireless operations and customer sales contracts in North America."

Plenty DMS was shipped to India as well.

Nortel has already handed off development of some advanced technology for a Japanese customer to Hitachi recently.

So who is China gonna call for LTE?

Networking giant Huawei has a murky history of cooperation with its homeland's authoritarian regime. And concerns over Huawei's government ties, according to some industry-watchers and security analysts, may have spooked Nortel's customers that carry sensitive U.S. government data and scuttled the Chinese company's offer to buy its Ethernet business.

Interesting reading (Govt considering possibility of blocking E// deal):

http://www.thestar.com/business/article/672371

(1) E// asking Canadian Govt for funding help
(2) Canadian government says it will review the bid AFTER the court proceeding to see if it is good enough for Canada!!!

Yo RIM boy ! Cut out the middleman. Just buy Ericsson and get it over with already.

Milan Beckichson

Maybe there IS something to that "Conspiracy Theory" theory.

Nortel employs multiply more in the United States where this bid was held and in an American Court (New York) where they also filed for bankruptcy and had their bonuses approved to loot the corpse before fire selling it today.

I question if Nortel would have been made to pay the the largest fraud settlement in Canada where we are renown for lax laws that reward than punish fraud. Charged Frank Dunn is also defended by Nortel board member John Manley's law firm and note that Dunn and Nortel both tried to have charged dismissed in the U.S.on "jurisdictional grounds" to no avail.

The vast majority of our industry is American owned so good luck and may I also point out the case of our Avro Arrow when challenging our more patriotic and protectionist big brother.

Sure this government sponsored extension of our Universities deserves merit in keeping Canadian assets dearly paid for right here under this fire sale but good luck. A little too little too late now. The is a done and it will be a monumental task to reverse the decisions these Americans have put in play at this stage.

It will be interesting to see how this plays out given Nortel wants to fire sell the rapidlyt depreciating assets they ran to the ground with ex insiders on every bidding party lacking RIM's presence with protest.

Sorry, I base my commentary on the latest buzz here:

Ottawa won't rule out Nortel intervention

http://www.theglobeandmail.com/report-on-business/ottawa-wont-rule-out-nortel-intervention/article1232631/

Ontario's finance minister, Dwight Duncan, says Canadian taxpayers helped fund research that led to Nortel's creation of LTE, or long-term evolution, technology and it shouldn't go to a foreign company.

Mr. Duncan says he wants Ottawa to block the Nortel sale to Ericsson and to help broker a deal with Research In Motion Ltd. (RIM-T83.611.111.35%) or another Canadian firm to keep the technology and development jobs in Canada.

Dawight Duncan.
Dawight Duncan.
WhaWho???
Another crybaby rant.
"I want Ottawa to block the Nortel sale to Eric and go to RIM"
Wah Wah Wah.
We should do this. We should do this. I want this. I want that.
All talk and Noooooooooooo action.
This is the sad reality of Canadian politics unless it is propping up or funding a
special interest group, a losing money venture (auto) or anything related
to multiculturalism. The number one political Agenda.
We need more immigrants!!
Doesn't matter if they contribute!!
We'll pay THEM to come here and live!!
Viva la turdeau.

"The government has the authority and responsibility to protect vital Canadian interests," Nortel said in a statement that echoed overtures last week from RIM co-CEO Jim Balsillie.

Nortel knows best, not RIM.

It's pretty simple.
Tomorrow the gov'ts on both sides of the border are set to rubber stamp the auction.
After that they all peel for vacation.
So if RIM have any chance of being considered for bids on unsold items (most likely scenario) or items already sold to Eric (most unlikely) it has be done today.
Good Luck Jim.
Putting your faith in clement and the gov't.
It is too laugh.