TORONTO – Nortel Networks has shot down Research In Motion (RIM)’s claims that it is being blocked as a potential bidder for the bankrupt telecom’s wireless business.
According to a statement released by Nortel on Wednesday, RIM has refused to comply with the court approved procedures required to become a qualified bidder for the company’s CDMA and LTE assets.
“Other parties moved expeditiously to comply with the court approved procedures to become qualified bidders, and RIM did not object to the approval of these procedures during the court process”, the statement reads. “It was not until July 15 that RIM submitted a letter to Nortel asking to be a qualified bidder and, since that time, Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel’s valuable intellectual property assets. RIM has refused, however, to comply with the court approved procedures.”
In order to participate in the court-approved bidding process, a qualified bidder is required to execute a standard confidentiality agreement, the statement explained. The agreement contains a common ‘standstill’ provision that allows Nortel to ensure it is directly involved in any future negotiations on the sale of its assets.
The standstill provision does not preclude future offers by a bidder to acquire assets consistent with any processes established by Nortel or the courts. Confidentiality agreements are a standard part of the auction bidding process and are designed to help run a fair process and protect a company’s confidential information, such as its intellectual property. All qualified bidders are subject to confidentiality agreements.
All bidders must comply with the bidding rules in order to maintain the integrity of the court-approved process. Nortel has already received offers from Nokia Siemens Networks and MPAM Wireless for its wireless business. The auction is scheduled for July 24, 2009.
