RIM’s Blocked Nortel Bid

Posted by Henry Finn

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.

Company:
Nortel
Website:
http://www.nortel.com
Location:
Toronto, Ontario, Canada

Hundreds of millions of people, Fortune 500 companies, and government institutions around the world trust their networks to Nortel's reliable and secure solutions. Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia... more

Company:
BlackBerry
Website:
http://www.blackberry.com
Location:
Waterloo, Ontario, Canada

Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Since then, BlackBerry products and services have continued to change the way millions of people around the world stay connected. With the launch of BlackBerry 10, we have re-designed, re-engineered and re-invented BlackBerry. Not only did we introduce a... more


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Henry Finn

Henry Finn

Henry Finn is Techvibes Community Manager for the Kitchener-Waterloo area. Henry is a recent graduate from the University of Waterloo where he majored in Economics and minored in Management, East Asian Studies, and International Studies. He is looking forward to showcasing some of Waterloo's latest tech startups and providing readers with an in depth informative read. Currently Henry is... more




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