Creditor Outbids Nokia Siemens for Nortel's LTE Assets
Jul 22, 2009, 2:10 PM by Eric M. Zeman
MPAM Wireless, an affiliate of Nortel creditor MatlinPatterson, has raised the stakes in the auction for Nortel's LTE and CDMA technology assets by placing a bid at the last moment for $750 million. The deadline for bidding was July 21. Nokia had already placed a bid of $650 million for the assets. MPAM Wireless hopes to buy up some of Nortel's assets and re-assemble them into an independent company. According to MPAM, the auction process is unnecessarily complicated in that all of Nortel's assets must be liquidated one at a time, and not together as a group. RIM also complained about the bidding process, and said yesterday that it was blocked from placing a bid of $1.1 billion for Nortel's assets because it wanted to buy more than one part of the business. The private auction is slated for Friday. Earlier this year, Nortel made the decision to cease operations and sell off its businesses in parts.
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