Page last updated at 09:14 GMT, Sunday, 26 July 2009 10:14 UK

Ericsson buys key Nortel assets

Nortel headquarters
Nortel went into bankruptcy protection at the start of the year

Sweden's Ericsson has won an auction for the wireless assets of bankrupt Canadian telecoms firm Nortel Networks.

Ericsson is paying $1.13bn (£688m) for the businesses, which analysts say will enable it to substantially increase its North American presence.

The units were put on sale by Nortel after it was forced to apply for bankruptcy protection in January, blaming the impact of global recession.

Nortel is now effectively in the process of being broken up.

There had previously been hope that it could emerge from bankruptcy protection as a slimmed-down firm.

'Sad story'

"An orderly disposal of the assets of Nortel is the best outcome for the stakeholders," said Nortel official Richard Lowe.

Telecoms analyst Jeff Kagan said the sale was "a sad story for Nortel, and a happy story for Ericsson".

"Rather than competing with Nortel, Ericsson has won," he said.

Nortel employed about 30,000 people worldwide at the start of this year.



Print Sponsor


SEE ALSO
Nortel UK enters administration
15 Jan 09 |  Business
Nortel in bankruptcy protection
14 Jan 09 |  Your Money
Nortel employees strike over pay
18 Aug 08 |  Business
SEC charges former Nortel bosses
12 Mar 07 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2020 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific