A U.S. bankruptcy court on Monday said bidding will start at $650 million, the threshold set by NSN. NSN, the prospective owner of Nortel’s wireless assets, would then have the right to match any higher offers.
Nortel testified yesterday it’s been forced into selling itself off in pieces because carriers no longer are confident in its finances. Wireless providers, including Verizon Communications Inc. (VZ), have told Nortel, “we love your technology, but we are concerned about your balance sheet,” said George Riedel, Nortel’s chief strategy officer, according to Bloomberg. “Unfortunately for us, we will win the technology prize, but not the commercial business,” Riedel added.
Such an admission probably comes as a surprise to no one except perhaps Nortel.