Ericsson buys key Nortel assets

Sunday, July 26, 2009


Sweden's Ericsson has won an auction for the wireless assets of bankrupt Canadian telecoms firm Nortel Networks.
Ericsson is paying $1.13bn (£688m) for the businesses, which analysts say will enable it to substantially increase its North American presence.
The units were put on sale by Nortel after it was forced to apply for bankruptcy protection in January, blaming the impact of global recession.
Nortel is now effectively in the process of being broken up.
There had previously been hope that it could emerge from bankruptcy protection as a slimmed-down firm.
'Sad story'
"An orderly disposal of the assets of Nortel is the best outcome for the stakeholders," said Nortel official Richard Lowe.
Telecoms analyst Jeff Kagan said the sale was "a sad story for Nortel, and a happy story for Ericsson".
"Rather than competing with Nortel, Ericsson has won," he said.
Nortel employed about 30,000 people worldwide at the start of this year.

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