Nortel Networks has decided to delay the auction of its global Optical Networking and Carrier Ethernet businesses that was initially scheduled to take place on Friday, saying it is still in discussions with interested parties.
Qualified bidders are now required to submit offers by tomorrow (17 November 17), and Nortel will provide a further update on the auction process and sale of these businesses during the week.
Meanwhile, Nortel Networks has completed the sale of substantially all of Nortel’s CDMA Business and LTE Access assets to Telefonaktiebolaget LM Ericsson (Ericsson) for a purchase price of $1,13-billion.
The sale was subject to court approvals in the US and Canada as well as regulatory and other customary closing conditions. These conditions have now been satisfied and the sale has been concluded.
"Completion of this first large-scale divestiture is a major milestone in Nortel’s plan to preserve the value of its innovation and know-how while maximising value through the sale of its businesses," says Pavi Binning, chief restructuring officer at Nortel.
"As we stated following July’s auction, the sale of our CDMA business and LTE Access assets to Ericsson represents a very positive prospect for our customers, our employees and for many of our other stakeholders. Our customers will benefit from having an experienced and financially strong partner supporting their CDMA and future LTE networks, while more than 2 500 skilled employees will now have new opportunities with a world-class technology company."
Under the terms of the sale, Nortel will provide transitional services to Ericsson, and Ericsson will provide products and services to Nortel in support of those CDMA customers remaining with Nortel.