Nokia Siemens buys Nortel in $650 million deal

[PhonemanSam]

http://my.earthlink.net/article/top?guid=20090620/4a3c6cd0_3422_1334620090620-1312543528

Nokia Siemens buys Nortel in $650 million deal
From Associated Press
June 20, 2009 4:10 AM EST

HELSINKI - Nokia Siemens Networks said Saturday it will buy Canadian-based Nortel Networks in a $650 million (?465 million) deal.

"Nokia Siemens Networks has taken a significant step towards strengthening its leadership in Long Term Evolution, or LTE, next generation wireless technology and expanding its market presence in North America," Nokia Siemens said.

Toronto-based Nortel Networks Corp. has been operating under bankruptcy protection since January.

The deal means that more than 2,500 Nortel employees, mostly in Canada and the United States, will be transferred to Nokia Siemens Networks, Nokia Siemens said. Canada's government-owned export credit agency, Export Development Canada, will support the transaction with a $300 million loan commitment, it said.

Nokia Siemens Networks, a joint venture of Nokia Corp. and German Siemens AG., is based in Espoo just outside Helsinki. Nokia Siemens Networks employs 60,000 people worldwide.

 

[GHTROUT]

That news release and its headline are somewhat misleading. Nokia is buying wireless division, but other units, including enterprise/pbx, etc., are still on the block - at least as of this minute.

[©] GHTROUT.com [⇔] A Variety of Free Resources for Nortel Meridian/CS1000 System Administrators

 

[gwebster]

Not even all of wireless. It includes CDMA and LTE. GSM is excluded.

 

[johnpoole]

if i had known it was only 650 million i would have bid on it.. of course that would require a large loan and winning the lottery at least 3 times.

john poole
bellsouth business
columbia,sc

 

[Pudge99]

1)Has anyone heard of who may be the #1 rumored buyer of the Enterprise business?

2)Do you think they would they be buying the product or strickly the customer base?

Difficult for anyone to answer the above questions, but would like to hear some opinions.

 

[M1north]

A report on CBC Radio this morning said the deal with Nokia is being backed by $300 million dollars in loan guarantees from Export Development Canada.

This is shameful! EDC was set up to assist CANADIAN corporations in exporting their products to the world. It should not be in the business of assisting foreign takeovers of Canadian corporations, especially ones in strategic areas like telecommunications.

Once more the Conservative government is demonstrating its complete disregard for our sovereignty. They wouldn't support in-Canada solutions to keep Nortel's technology and highly-skilled jobs here in Canada, but they can find $300 million to help sell it off to Nokia. (Is it significant that this deal was announced just as Parliament adjourned for the summer, saving the government from having to answer any questions about the use EDC funds?)

How many ex-Nortel employees will still be employed by Nokia five years from now? There is no evidence that Nokia has a long term commitment to Canada or any Canadian jobs.

 

[M1north]

Here is how insiders see things unfolding in the weeks to come: - The sale of Nortel's enterprise unit -- a US$2.4-billion-a-year (2008 revenue) business, which markets telephone and data networks to corporations and other large organizations -- has been tentatively scheduled for as early as today. A delay until next week is possible. Avaya and Siemens Enterprise Communications of Germany are top bidders. - Nortel's $1.4-billion-a-year optical technology group, based in Ottawa, is expected to be sold within five weeks. Insiders say this unit was within days of being sold when Nortel sought bankruptcy protection, thereby killing the potential deal. Current contenders for the unit are believed to include Huawei Technologies Co. (a Chinese competitor), Alcatel-Lucent of France, Fujitsu Ltd. of Japan and at least one private-equity firm