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RIM: Nortels A Bunch of Meanies for Not Letting Us Bid

BlackBerry maker Research in Motion Ltd. (RIMM) says it was prepared to pay $1.1 billion for Nortel Networks’ (NT) wireless unit, and some other assets, but that it was prevented from doing so.

RIM said it wanted to bid on goods in addition to the wireless business, and because of that, Nortel executives and bankruptcy court-appointed monitors barred the company from taking part in sale activities at all.

“Nortel and its advisers were fully aware of RIM’s desire to purchase other Nortel assets as part of a solution to retain key portions of Nortel’s business under Canadian ownership,” RIM said in a July 20 statement. “Despite repeated efforts, Nortel, its advisers and its court-appointed monitor have rejected RIM’s repeated attempts to engage in meaningful discussions.”

But Nortel told Bloomberg RIM waited two weeks past the deadline to submit a written application to be a qualified bidder. Nortel then tried to negotiate a non-disclosure contract about its intellectual property but RIM refused to comply with certain procedures, Bloomberg reported.

Either way, it looks like Nortel’s – and its creditors’ – loss. Nokia Siemens Networks says it will pay $650 million for Nortel’s wireless division, a number many observers say is massively undervalued. Meanwhile, Avaya just announced it wants Nortel’s enterprise group for $475 million.


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