Research in Motion claims it has been prevented from bidding on Nortel’s wireless business due to its desire to purchase other parts of the company. RIM was told it did not qualify to bid on the wireless business division unless it promised not to submit offers for additional Nortel assets for one year.
RIM had been prepared to pay around $1.1 billion US for Nortels CDMA and LTE (4G) businesses. Nokia Siemens has already submitted a $650 million US offer for Nortel’s wireless businesses. The Tuesday 4:00pm deadline for submitting bids is quickly approaching and it’s not clear what impact RIM’s remarks will have on the bidding process.
RIM is arguing that Canadian tax payer’s money has gone into Nortel’s technology and should not be exported. The company also suggested the loss of Nortel’s technology could have national security implications urging the government to allow RIM attempts at acquiring the company. RIM co-chief executive Jim Balsillie blasted the Export Development Corporation for its planned $300 million dollar loan to Nokia Siemens for the purchase of Nortel’s wireless division.
Midday trading of RIM’s shares are down $2.16 to $81.02 on the news of RIM’s blocked bid and speculation over the company’s next move.