SAN FRANCISCO — Reuters Published on Tuesday, Apr. 07, 2009 8:30PM EDT Last updated on Thursday, Sep. 17, 2009 3:05PM EDT
Nokia Siemens Networks has reportedly offered to buy key assets from bankrupt Nortel Networks Corp. as it seeks to expand its foothold in the U.S. wireless market.
Nokia Siemens, a joint venture between Nokia and Siemens AG, made an unsolicited offer for large parts of Nortel's carrier network group last month, according to a Wall Street Journal report Tuesday, citing people familiar with the matter.
The report said Nokia Siemens is also interested in Nortel's LTE wireless technology, a high-speed wireless technology intended to replace the technology that cell phone networks currently rely on. The technology is slated to be deployed in the coming years by large wireless telecommunications carriers, including Vodafone Group Plc and Verizon Wireless, a joint venture of Vodafone and Verizon Communications Inc.
Representatives from Nortel and Nokia Siemens declined to comment on the report.
Nortel, once the largest North American maker of telecommunications gear, filed for Chapter 11 bankruptcy protection in U.S. federal court and for creditor protection in Ontario Superior Court of Justice in January.
The Toronto-based company said the reorganization will allow it to deal with its cost and debt burden, while allowing it to become a highly focused and financially sound leader in the communications industry.
An auction of Nortel's enterprise unit last week attracted bids from Avaya Inc. and Siemens Enterprise Communications, according to sources cited in the Wall Street Journal. An Avaya representative was not immediately available for comment.
The bids being offered for Nortel's various units are believed to be low, the report said.
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