Bankruptcy courts in Toronto and Wilmington, Del., are expected to rule today on LM Ericsson's bid to buy Nortel Networks Corp. wireless business.
The Swedish wireless giant's incoming chief executive says he is confident the $1.13-billion (U.S.) bid will be approved despite objections to the deal.
The most strenuous objection has come from BlackBerry maker Research In Motion Ltd. RIM-T , which wasn't part of the auction but made an informal $1.1-billion bid for Nortel's wireless assets.
RIM was shut out when it objected to Nortel's bidding process, though it promised to continue its fight to buy certain assets and urged the federal government to “get involved to protect vital Canadian interests.”
Ericsson said it followed all the rules to acquire the assets, including those involving a key next-generation wireless technology that RIM and the Ontario government argue are vital and should stay in Canada.
Ontario Finance Minister Dwight Duncan joined RIM's calls Monday, saying Ottawa should block the deal which would allow key Canadian technology to slip into foreign hands.
The agreement with Ericsson covers Nortel's older CDMA technology, as well as the newer long-term evolution, or LTE, wireless businesses of the insolvent Canadian company's Carrier Networks unit.
Industry Minister Tony Clement wouldn't say Monday whether he would intervene – choosing instead, he said, to keep his options open.
Federal Liberal Leader Michael Ignatieff has also called on the federal Conservatives to review the sale to make sure it's in “Canada's interest.”
