Nokia Siemens Networks has proposed to purchase key parts of the bankrupt Canadian telecom company Nortel Networks Corp., in a bid to expand its presence in the US market.
According to the people familiar with subject, Nokia Siemens, a JV between Nokia Corp. and Siemens AG have made unsolicited offer in March for key parts of Nortel’s carrier networks group, including the CDMA group, reported Wall Street Journal.
Additionally, Nokia Siemens is reported to be also interested Nortel’s R&D unit dedicated to the LTE wireless technology that is scheduled to be rolled out in coming years by the world''s largest carriers, including Vodafone Group PLC and Verizon Wireless, a joint venture of Vodafone and Verizon Communications Inc.
The deal if materialized, would involve the transfer of more than 200 employees from Nortel.
Besides, three other groups including Genband Inc., a closely held Plano, Texas, company, Avaya and Golden Gate Capital have also floated bids for the piece of Nortel
Nortel's carrier networks group that makes digital switches and media gateways, which connect traditional telecom network gear with newer technologies transmitting voice and data using Internet protocols.
Despite the reduced liabilities, the amounts being made for the Nortel parts are believed to be considerably low. Since the company filed for bankruptcy, Nortel has seen diminishing orders for its enterprise equipment and dismal prices.
Nortel was once one of Canada's biggest companies, with 93,000 employees and stock valued at $250 billion but after the dot-com boom, larger Western companies and the surge of low-cost Chinese equipment dwarfed it to a 30,000 workforce company.