The Federal Trade Commission has given its blessing to Nokia Siemens’ $650 million offer for some of the assets of bankrupt telecommunications gear maker , Reuters and eWeek reported Tuesday.
Nokia Siemens wants to buy technology known as CDMA (code division multiple access) and LTE (long term evolution) technology. A bankruptcy judge has set an auction for July 24. Bids are due by July 21.
As a so-called “stalking horse,” Nokia Siemens has the right to match any other offers.
Nortel, which employs some 2,000 people in the Triangle, field for bankruptcy in January.
As many as 2,500 of Nortel’s 30,000 employees would be transferred to Nokia Siemens if the deal goes through.
However, Nortel may yet be retained whole if so-called vulture fund MatlinPatterson in New York gets its way. The firm, which owns 10 percent of Nortel’s debt, reiterated Tuesday that it wants to put together a financing package and buy all Nortel.
The Ottawa Citizen with other Nortel debt holders to build a consensus for rejection of the Nokia Siemens bid.
The newspaper also noted that a member of Canada’s Parliament is criticizing the government’s Export Development Canada agency for providing a $300 million loan to Nokia Siemens as part of the Nortel buy.
"We need a Canadian solution for Nortel to protect jobs and pensions, and protect Canadian know-how,” said Paul Dewar.