The bidding war for Nortel Networks' wireless assets gained another major participant, with Ericsson acknowledging it has bid for the bankrupt company's wireless assets.
According to a report in the Globe and Mail, which cited unnamed people familiar with the bidding process, Ericsson entered a €513 million bid. However, Ericsson representatives declined to comment on that figure.
The Ericsson bid tops the two formal bids that have been made so far. Private equity firm and Nortel creditor MatlinPatterson has submitted a €510 million bid, topping Nokia Siemens Networks' opening bid of €457 million. Nokia Siemens has the right to match higher bids at the auction for Nortel's wireless assets, which is set for today(Friday).
Ericsson's bid may represent an attempt by the vendor to expand its presence in the North American market, which was the strategy behind Nokia Siemens' original offer.
The Ericsson bid tops the two formal bids that have been made so far. Private equity firm and Nortel creditor MatlinPatterson has submitted a €510 million bid, topping Nokia Siemens Networks' opening bid of €457 million. Nokia Siemens has the right to match higher bids at the auction for Nortel's wireless assets, which is set for today(Friday).
Ericsson's bid may represent an attempt by the vendor to expand its presence in the North American market, which was the strategy behind Nokia Siemens' original offer.
Meanwhile, despite objections from Research In Motion over its blocked €775 million bid, Nortel said the auction would proceed as planned.
“Nortel, the Canadian Monitor, the US Unsecured Creditors' Committee and the Ad Hoc Bondholder Group have reviewed the circumstances related to RIM and have concluded that all bidders must comply with the bidding rules in order to maintain the integrity of the court-approved process,” Nortel said in a statement.
“Consistent with that process, the auction will commence as planned on Friday, July 24, 2009.”
According to the Globe and Mail, RIM declined to comment on its plans, but unnamed sources said the company was still mulling its options.
According to the Globe and Mail, RIM declined to comment on its plans, but unnamed sources said the company was still mulling its options.
A win in the auction would bolster Ericsson’s North American sales. Last month, Ericsson and Sprint Nextel, a Nortel customer, signed a €3.5 billion deal for Ericsson to manage Sprint's networks. Ericsson is now a strategic supplier to the four largest mobile operators in the US.
This article originally appeared in FierceWireless