You just have to love the sense of political urgency swirling around Ottawa these days over the future of Nortel. After ignoring the company’s struggles, including a declaration in mid-June that all of its assets were on the block, the politicos are suddenly alive with the cause.
Bloomberg reports that a Canadian Parliamentary committee will hold “emergency” hearings on Friday to review the $1.13-billion sale of Nortel’s CDMA wireless business and LTE R&D unit to Ericsson.
Meanwhile, Industry Minister Tony Clement is still pondering whether or not to review the sale.
Folks, this is just political posturing. The sale to Ericsson isn’t going to be stopped because the CDMA business isn’t worth the hassle. Ericsson has more than 2,000 employees in Canada so it can easily sell the politicos on how it’s a good corporate citizen who will continue to employ people and invest in R&D in Canada. End of story.
If the federal government really wanted to protect Nortel, it would have provided financial support months ago.
And if the government really wants to get involve, it might be better off focusing its effort on Nortel’s LTE patents, which are world-class as opposed to the slowly-declining CDMA business.
One more thing: if the U.S. government had no problem seeing Lucent sold to France’s Alcatel, what’s the fuss about foreign buyers going after Nortel?
Well, I just wondering for those services provided to immigrants, they have to hire or at least lots of Canadian people. So the money went to their pockets. All new immigrants have to eat and live. They can not get these free from government. And probably after job hunting services, they have to buy computers, subscribed high speed internet. Buy bus fare to get interview, attend school and purchase new car if they have better financial situation. As long as they do not receive welfare, they contribute to this country like a long term tourists to spend money here. Without them, image how many those services jobs will be lost. The government is not stupid.
On the other hand, I am strongly against refugee and aslyum. Some orgazation get money from government to make story and spread rumor, attend demonstration professionally world wide. They really waste tax payers' money!!
ioneca
Agree that what you are seeing in Ottawa now is just political postering. The Harper Gov't AND opposition parties are finally waking up to the fact that if they don't make it LOOK like they are concerned, it will come back to bite them.
The Wireless deal is just the first (Radware hardly counts) of the major sell-offs. If they block the Wireless sale to make RIM happy, what happens to MEN, CVAS, and Enterprise BU's..?!!
To block the Wireless sale would lead to Harper having to step up to a bailout package… not likely going to happen.
ioneca
Agree that what you are seeing in Ottawa now is just political postering. The Harper Gov't AND opposition parties are finally waking up to the fact that if they don't make it LOOK like they are concerned, it will come back to bite them.
The Wireless deal is just the first (Radware hardly counts) of the major sell-offs. If they block the Wireless sale to make RIM happy, what happens to MEN, CVAS, and Enterprise BU's..?!!
To block the Wireless sale would lead to Harper having to step up to a bailout package… not likely going to happen.
Parliamentary Committee to Hold Emergency Hearing
You just have to love the sense of political urgency swirling around Ottawa these days over the future of Nortel. After ignoring the company’s struggles, including a declaration in mid-June that all of its assets were on the block, the politicos are suddenly alive with the cause.
Bloomberg reports that a Canadian Parliamentary committee will hold “emergency” hearings on Friday to review the $1.13-billion sale of Nortel’s CDMA wireless business and LTE R&D unit to Ericsson.
Meanwhile, Industry Minister Tony Clement is still pondering whether or not to review the sale.
Folks, this is just political posturing. The sale to Ericsson isn’t going to be stopped because the CDMA business isn’t worth the hassle. Ericsson has more than 2,000 employees in Canada so it can easily sell the politicos on how it’s a good corporate citizen who will continue to employ people and invest in R&D in Canada. End of story.
If the federal government really wanted to protect Nortel, it would have provided financial support months ago.
And if the government really wants to get involve, it might be better off focusing its effort on Nortel’s LTE patents, which are world-class as opposed to the slowly-declining CDMA business.
One more thing: if the U.S. government had no problem seeing Lucent sold to France’s Alcatel, what’s the fuss about foreign buyers going after Nortel?