There is a common thread shared by Ericsson and Nortel which is the pride associated by the citizens of Sweden and Canada respectively with the companies for there are not many companies from the two countries which have been able to stamp their reputation on a global scale for more than 100 years. 

And this pride is coming in the way of Ericsson’s $ 1.13 billion bid to acquire Nortel’s wireless assets. When Ericsson had bid $ 1.13 billion raising its own original offer of $ 730 million as well as surpassing Nokia Siemens Networks’ (NSN) $ 650 million bid, it was believed that the deal is done and Ericsson is set for a significant competitive advantage.

But the deal is still stuck for approvals as it is emerging that the general feeling in Canada is that Nortel was more than a company and there is a heavy sentimental attachment with the organization.

For instance, Canadians apprehend that with the acquisition, the R&D activities may shift out of the country. In fact Ericsson was scheduled to present its case before the Canadian House of Commons Standing Committee on Industry, Science and Technology on Friday to convince them that it is committed to long term development of the firm in Canada.

Furthermore, RIM has put forth its claim that it was willing to bid more for the firm to ensure that the management stays within the controls of Canadians. It had alleged that Nortel had prevented it from bidding by putting barriers in way of special terms and conditions.

For the moment Canadian Prime Minister Stephen Harper has ruled out any intervention by way of blocking the deal reasoning that he may sound hypocrite as he is advocating free trade with other countries. He has however said that the deal may be put for review under Investment Canada Act. “There'''s a process, a process of review of purchases by foreign companies. And we will respect this process," said the PM. "At the same time, we do not intend to increase protectionism in investment questions when we are in a global campaign to encourage free trade,” added Harper.

Nortel in its history spanning 114 years has seen many Canadians investing in the firm through the market and the firm was till last decade a kind of poster boy for the Canadians.

For Ericsson it was rather easy to identify a valuation for Nortel’s wireless assets. But its next challenge lies in convincing the Canadians about the invaluable, intangible asset of pride.