RESEARCH TRIANGLE PARK, N.C. – The Canadian parliament’s House of Commons industry committee has called an emergency meeting Friday to discuss Ericsson’s $1.13 billion purchase of wireless assets from bankrupt Nortel.
Government and private industry critics, including BlackBerry maker Research In Motion, want the Canadian government to block the sale.
Nortel, RIM and Ericsson , according to the Toronto Globe and Mail. However, the committee itself doesn’t have the power to stop the transaction.
“Rather, the hearings will serve to inform the Members of Parliament, and by extension, the public, about the controversy swirling around the sale of one of Canada’s most prominent high-tech companies,” the newspaper said.
Bankruptcy courts in the U.S. and Canada approved the Ericsson deal as well as for Nortel’s Enterprise business unit. Many of Nortel’s RTP workforce are involved in the Enterprise unit.
The Canadian government can review the Ericsson purchase under existing law but has not decided whether to intervene.