Canada won't review $4.5B sale of Nortel patents

Jul 19, 2011

(AP) -- The $4.5 billion sale of Nortel's patent portfolio to a consortium including Research In Motion Ltd. cleared another hurdle Tuesday as the Canadian government said the deal does not need to be reviewed under the Investment Canada Act.

Industry Minister Christian Paradis said that based on the accounting value of the portfolio, the sale would not be reviewed because it does not meet the $328 million threshold requirement.

Paradis had asked officials earlier this month to see if the sale should be scrutinized under the Investment Canada Act, which legislates that foreign investments with a book value of more than $328 million must be of "net benefit" to the country.

"Based on the information provided by the investor and Nortel's 2010 audited financial statements, the acquisition of the Nortel patents is not subject to review for net benefit under the act," said Paradis.

In addition to RIM, the Rockstar Bidco LP consortium includes Apple, EMC, Ericsson, Microsoft, and Sony.

The group beat out and others for the more than 6,000 patents, which include technology that is expected to be the backbone of wireless networks for the next decade.

Waterloo, Ontario-based RIM's share amounted to 17 percent of the total purchase price; however how the ownership structure of the patents within the consortium has not been disclosed.

., which is based in Toronto, filed for in 2009 and has been selling off its operations bit by bit since then.

The patent sale, which was approved last week by courts in the U.S. and Canada overseeing the process, was the last major technology asset Nortel had left to sell as it wound up its operations.

Nortel has held several auctions for its various divisions and assets that have required a review under the Investment Canada Act.

In 2009, then-industry minister Tony Clement signed off on Nortel's sale of its Metro Ethernet Networks division to U.S.-based Ciena Corp. for $769 million. The government also approved the sale of Nortel's enterprise solutions business to Avaya Inc. for $900 million.

Explore further: Uber: As drivers get perks, riders losing patience on privacy snafus

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Judges in US, Canada approve Nortel patents sale

Jul 11, 2011

(AP) -- U.S. and Canadian judges have approved a $4.5 billion cash bid from a consortium that includes smartphone makers Apple and Research In Motion for patents held by bankrupt telecom-equipment maker Nortel.

Courts OK $1.13B sale of Nortel assets to Ericsson

Jul 28, 2009

(AP) -- U.S. and Canadian courts have approved Swedish wireless company LM Ericsson's $1.13 billion bid to buy next-generation wireless technology and other assets from insolvent telecom equipment maker Nortel Networks Corp.

Ciena wins court approval for Nortel unit bid

Oct 16, 2009

(AP) -- Ciena Corp. won court approval Thursday to start bidding on Nortel Network Corp.'s optical and Ethernet division with an offer valued at more than $532 million.

Ciena bids $521M for Nortel business units

Oct 07, 2009

(AP) -- Ciena Corp. is offering cash and stock worth $521 million to acquire some of Nortel's most-prized remaining business units as the fallen telecommunications company continues to liquidate.

Recommended for you

Apple market value hits $700 bn

4 hours ago

A rise in Apple shares Tuesday pushed the market value of the trend-setting US tech icon above $700 billion, becoming the first company to hit that milestone.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.