Nortel to sell its carrier network business as well
23 Sep 2009
The bankrupt Canadian telecom operator Nortel, has taken yet another step towards disintegration by announcing the auction of its carrier networks business as well - the third business it is selling since January this year.
Earlier it had sold its enterprise solutions division for $900 million to Avaya. (See: Avaya bags Nortel's telecom unit with $900 million bid)
Nortel said that its principal operating subsidiary, Nortel Networks Limited and its US subsidiary, Nortel Networks Inc, plan to sell by auction the assets of its carrier networks business associated with the development of next generation packet core network components (packet core assets).
The packet core assets consist of software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets, the Toronto-based company said.
Nortel Networks Ltd will also grant the purchaser a non-exclusive licence of relevant patent intellectual property as part of the sale.
Nortel has filed a motion seeking the establishment of a Section 363 sale procedure with the United States Bankruptcy Court for the district of Delaware that will allow qualified bidders to submit offers for the packet core assets, it said.
