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Canada clears Ericsson's bid for Nortel

AFP/The Local · 17 Sep 2009, 07:48

Published: 17 Sep 2009 07:48 GMT+02:00

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"Based on all the information presented to me and to the government, there are no grounds to believe that this transaction could be injurious to Canada's national security," Clement told a press conference.

The deal was approved by Canadian and US bankruptcy courts at the end of July, but at the time Ottawa remained circumspect over whether the sale met the country's investment laws.

The conservative government said it would have preferred to see Nortel's technology transferred to another Canadian group, Research In Motion (RIM) the makers of the Blackberry, whose final offer topped that by Ericsson.

"Ericsson is offering jobs to roughly 800 Canadian Nortel workers at substantively the same pay and benefits and based on the same location," Clement said.

"According to the company, an overwhelming majority of employees who have been offered a job so far have accepted."

Story continues below…

The acquisition will make North America the biggest market for Ericsson, which last year reported sales in the region of $2.7 billion.

AFP/The Local (news@thelocal.se)

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Your comments about this article

11:10 September 17, 2009 by Leprehcaun
All eyes on ericsson.. they better not screw this up. What do Canadians feel about this?
23:26 September 17, 2009 by DavidtheNorseman
As a Canadian I'm glad to see the ex-Nortel workers keeping employment.

Nortel has had excellent employees and produces good and inovative technology.

Their problems seem to have revolved around senior management issues that hopefully Ericsson can avoid (don't try cheating major US companies out of a billion dollars, etc.).

Probably by this point the name "Nortel" is more of a disadvantage than advantage (massive stock value losses multiple times....).

We are familiar with Ericsson through their cell phones (I had one some years ago) and Sweden and things Swedish are generally well thought of here....you understand the ways of snow and moose :-)

Good Luck!
05:00 September 18, 2009 by BIG
800 doesn't seem that much, how much was the original workforce?

...speaking of moose, what do you call a moose with no name?




An anonymoose! :)
05:28 September 18, 2009 by Greg in Canada
"What do Canadians feel about this?"

Nortel was a golden boy company that fell hard on its face. My cousin invested heavily in Nortel stock expecting an early retirement but lost a lot of money in the end. A lot of people were in the same boat.

It's sad to see it go, but I'd just as soon have Swedes purchase it as anybody. At least you folks also play ice hockey, curling and ski.:-)

800 jobs doesn't seem like I lot. Nortel must have employed many more at one time.

The company was a bit of a tragedy as it was a Canadian success story that crashed and burned, but not because of the products or technology. I hope Ericsson can put it back on top.
16:20 September 18, 2009 by CanadianCoder
I don't have any problems with it.
01:59 September 20, 2009 by honorable
My friend invested one third of his money in Nortel at $ 1200 per share in 2 000, after warm recommendations from his broker. The shares are now worth 19 cents. He lost only 99,98 % of his investment.
23:33 September 21, 2009 by bobnbri
I am Canadian and I am happy for those people who will keep their jobs.

I am also thrilled that it is Ericsson ( a great Swedish company) and not a non-European company stepping in.

Years ago I speculated in put and call option stategies on Nortel stock because they kept revising their revenue recognition requirements for the balance sheet that caused them to constantly change their earnings statements. The financial management communities in Canada and the US got fed up and dumped the stock. I shorted and made money as this giant fell out of bed.

From an accounting stand point they really just kept on screwing things up! Investors dumped their holdings big time. Many after collosal losses.

Ericsson as far as I'm concerned is the white knight for these employees.

And most of us old stock Canadians love Sweden!! Some of us have Swedish ancestry too! My Great Grandmother was a Gustafsson. She was a cousin of somekind of Greta Garbo's father!

Obviously I LOVE Sweden!!
19:12 September 29, 2009 by Jon in KC
Interesting how everyone views Ericsson as the good guy rolling in and saving Nortel. I am not sure how I feel about it. I now work for Ericsson thanks to a deal they made to take over operations for Sprint in the US. Only time will tell how this will end up, but we at Sprint joke that we bought Nortel since we paid Ericsson 5 billion a few weeks before.

Let us hope for the best.
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