NEWS
Ericsson cast the $1.13bn winning bid in an auction for the wireless assets of bankrupt Nortel Networks, the companies said on Saturday.
The Swedish telecommunications giant picked up Nortel's CDMA and next-generation LTE wireless technologies. As part of the agreement, at least 2,500 Nortel workers supporting CDMA and LTE will be offered jobs at Ericsson.
Ericsson was one of three bidders in Friday's auction. Nokia Siemens Networks and private equity firm MatlinPatterson were its competitors.
In mid-June, Nokia Siemens offered $650m for Nortel's assets. That offer set others into motion and led to the auction.
"Our final offer for Nortel's assets represented a fair price, and we did not enter this process with a win-at-any-cost mindset," Bosco Novak, Nokia Siemens' chief markets operations officer, said in a statement.
Ericsson's bid is still subject to bankruptcy court approval in the US and Canada.
The purchase virtually ensures Nortel will sell off the rest of its businesses, instead of reorganising into a smaller company.
"Nortel remains focused on finding the right buyers for our other businesses," Nortel CEO Mike Zafirovski said in a statement.
Once a giant in wireless gear, Toronto-based Nortel filed for bankruptcy earlier this year.
Nortel was founded in 1895 as Northern Electric and Manufacturing and supplied telecommunications gear for Canada's young telephone system. At the height of its glory days about 10 years ago, Nortel was worth $250bn and had more than 90,000 employees.
