The Globe & Mail has an interesting story on how Canada isn’t likely to stop the sale of Nortel’s CDMA business to Ericsson because the book value of the assets involved falls below a threshold that would trigger a review.
Although the deal is worth $1.13-billion, Nortel values the assets at $149-million, which is less than half the $312-million benchmark that would cause Investment Canada to look at the deal.
Of course, it doesn’t make sense anyway to review or stop the deal because it involves a business dying a slow death. Although still profitable, CDMA sales are declining as GSM and 4G technology become increasingly popular.
In hindsight, Nortel should have sold the business a few years ago when it could have fetched a higher price. Of course, Nortel should have also sold the enterprise business a few years ago.
I would assume the existing networks need to be split more than they are – physically so, even.
less
Only mildly on/off-topic, but I found a news item today that explains “compassion.”
The man convicted of murdering 270 people by blowing Pan Am flight 103 out of the sky above the Scottish town of Lockerbie two decades ago was on his way home to Libya on Thursday after authorities set him free.
“Our justice system demands that judgment be imposed but compassion available,” MacAskill said. “Our beliefs dictate that justice be served but mercy be shown.” But he said al Megrahi's lack of compassion for his 270 victims should not be a reason for Scotland to deny compassion to him.
The justice secretary said he decided not to transfer al Megrahi to a Libyan prison, even though a prisoner transfer agreement exists between the United Kingdom and Libya, but instead chose to set him free on compassionate grounds.
Said the brother of a bombing victim:
“…let's cut through all this information. He's being released because big business in the United States, Great Britain want the oil in Libya, and that's what's driving this whole wagon,” he added.
Ah, so. Just like Cisco needed Nortel out of the way…..?
scalppeeler
I fight all the time and do well at it. You sound like a little girl.
scalppeeler
I fight all the time and do well at it. You sound like a little girl.
No Review for You, Nortel
The Globe & Mail has an interesting story on how Canada isn’t likely to stop the sale of Nortel’s CDMA business to Ericsson because the book value of the assets involved falls below a threshold that would trigger a review.
Although the deal is worth $1.13-billion, Nortel values the assets at $149-million, which is less than half the $312-million benchmark that would cause Investment Canada to look at the deal.
Of course, it doesn’t make sense anyway to review or stop the deal because it involves a business dying a slow death. Although still profitable, CDMA sales are declining as GSM and 4G technology become increasingly popular.
In hindsight, Nortel should have sold the business a few years ago when it could have fetched a higher price. Of course, Nortel should have also sold the enterprise business a few years ago.