Nokia Siemens Networks (NSN) said it is prepared to increase the size of its $650 million stalking horse bid for the bankrupt Nortel's CDMA and LTE assets if another entity presents a higher offer ahead of the July 21 deadline for bids.
"That may be a requirement in order to remain in the bid process," said Sue Spradley, the North American chief of NSN. "And we'll do so." An auction is set for July 24 in New York. NSN faces a possible rival in MatlinPatterson, a private-equity firm and a Nortel bondholder and creditor, which has said it is formulating a rival bid and hopes to keep Nortel intact.
Spradley, speaking at the Economic Club of Canada in Toronto, warned that a bidding war for the assets could result in layoffs. She also said that Nokia Siemens could possibly acquire some of Nortel's other assets, but said the company was currently focused on simply getting the wireless business.
"Right now our focus is on the CDMA and LTE assets. We want to get that process through the gate," she said. "If other assets come on to the market, we will look at each one for their value and if there is something there, we will do a deal. But, it needs to have the right value for us and make sense given our customers."
For more:
- check out the Toronto Star
- take a look at Reuters
- read the Financial Post
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