WATERLOO – Research In Motion Limited (RIM) said that it is being held back from bidding on bankrupt Nortel Networks’ wireless business because it has expressed interest in buying some of its other assets as well.
RIM said that it could be qualified as a bidder only if it promised not to submit offers for other Nortel assets for a period of one year. Nortel’s code division multiple access (CDMA) business and long term evolution (LTE) businesses are part of a bankruptcy auction scheduled for July 24, 2009.
Nortel and its advisors were “fully aware” of RIM’s desire to purchase other Nortel assets, the BlackBerry maker said in a statement. It said that it would be prepared to pay in the range of US $1.1 billion, a value “substantially in excess” of the $650 million stalking horse bid made by Nokia Siemens Networks a month ago.
“RIM is extremely disappointed that Nortel’s world leading technology, the development of which has been funded in part by Canadian taxpayers, seems destined to leave Canada and that Canada’s own Export Development Corporation is preparing to help by lending $300 million to another bidder”, said co-CEO Jim Balsillie in the statement. “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, but RIM has found itself blocked at every turn."
