Updated July 21, 2009

BlackBerry maker Research In Motion says it wants parts of Nortel

Print this story
By Local Tech Wire

Research In Motion, the maker of the popular BlackBerry wireless devices, could be a new player in the bidding for assets of bankrupt telecommunications gear Nortel.

In a statement released Monday night, RIM said it was willing to pay nearly double what Nortel has been offered for key wireless assets by Nokia Siemens. However, RIM complained that it was being blocked from a possible acquisition and asked for government intervention.

Both companies are based in Canada.

The RIM statement came hours after Nortel said one of its rivals Avaya, was interested in acquiring other Nortel assets for more than $400 million.

“The best outcome to preserve value for the stakeholders and the best way to preserve assets is to sell all the businesses,” Chief Executive Officer Mike Zafirovski told Bloomberg news service. “We do still have some significant assets ahead of us.”

If that purchase were to go through, Avaya’s new holdings would include a part of Nortel’s shrinking campus and ranks of employees in RTP.

"RIM remains extremely interested in acquiring Nortel assets through a Canadian ownership solution that would serve the dual purpose of keeping key wireless technologies in Canada and extending RIM's leadership in the research, development and distribution of leading-edge wireless solutions," said RIM co-Chief Executive Officer Jim Balsillie. "But RIM has found itself blocked at every turn," the Toronto Globe and Mail quoted him as saying.

Nokia Siemens is the current favorite to acquire Nortel’s wireless assets in a bankruptcy auction on July 24. Nokia Siemens has offered $650 million.

RIM was willing to over some $1.1 billion, the company said.

The Canadian government has largely taken a hands-off approach to the Nortel deal, although the government’s Export Development Corp could be involved in some of the Nokia Siemens deal financing.

"As Nortel is in bankruptcy protection, the Government of Canada does not have a say how the judge rules on any proposed sale of Nortel assets,” Industry Minister Tony Clement told the Canadian newspaper.

Nortel field for bankruptcy protection in both the U.S. and Canada in January.

In a statement, Nortel defended its handling of the bankruptcy proceedings.

Nortel said RIM did not object initially to procedures for the bankruptcy and did not seek to become a bidder until July 15.

"Since that time, Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel's valuable intellectual property assets, but RIM refused to comply with the court-approved procedures,” Nortel said.

“Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel’s valuable intellectual property assets, but RIM refused to comply with the court approved procedures,” the company said.

Copyright 2010 by Capitol Broadcasting Company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tags: Nortel

Featured