Nortel Selects Ericsson as Successful Bidder for CDMA Business and
LTE Access Assets
(Thomson Reuters ONE) - - Enters into Sale Agreement for CDMA Business and LTE Access Assetswith Ericsson for US$1.13 Billion- A Minimum of 2,500 Nortel Employees will be Offered the Opportunityto Continue their Work at Ericsson- Canadian and U.S. Court Approvals of the Sale will be Sought at aJoint Hearing on July 28TORONTO, ONTARIO--(Marketwire - July 25, 2009) - Nortel(i) NetworksCorporation (OTCBB: NRTLQ) announced today that it, its principaloperating subsidiary Nortel Networks Limited, and certain of itsother subsidiaries including Nortel Networks Inc., have concluded asuccessful auction of substantially all of Nortel's CDMA Business andLTE Access assets. Telefonaktiebolaget LM Ericsson ("Ericsson") hasemerged as the winning bidder with a purchase price of US$1.13billion. The bid is subject to court approvals in the U.S. and Canadaas well as regulatory and other customary closing conditions andcertain post-closing purchase price adjustments.If approved by the courts, Ericsson will purchase Nortel's CDMAbusiness which is the second largest supplier of CDMA infrastructurein the world, and substantially all of Nortel's LTE Access assetsgiving it a strong technology position in next generation wirelessnetworks. Also as part of this agreement, a minimum of 2,500 Nortelemployees supporting the CDMA and LTE Access business will receiveoffers of employment from Ericsson.Commenting on the announcement, Nortel President and Chief ExecutiveOfficer, Mike Zafirovski said:"The anticipated sale of our CDMA business and LTE Access assets toEricsson for $1.13 billion represents a very positive prospect forour customers who will be able to continue their relationships with along term partner; for employees who will have new opportunities atEricsson and for many of our other stakeholders. I want to especiallythank our customers for their tremendous support during the process,which contributed to such a positive outcome.""Nortel remains focused on finding the right buyers for our otherbusinesses while continuing to maintain excellent customer servicelevels. We are determined to maximize value while preservinginnovation platforms, customer relationships and jobs to the greatestextent possible. With today's agreement and through the anticipatedsales of the Company's other businesses, Nortel will leave its markon the industry for decades to come."Commenting on the sale, Richard Lowe, President of Carrier Networksat Nortel, said:"The outcome of today's auction underscores the value the industryplaces on Nortel's CDMA business and LTE Access assets, which includea strong customer base and world-class operations. Nortel's extremelytalented and committed employees have been an integral part of oursuccess in wireless and we are very pleased that so many of them willhave the opportunity to continue their innovative work withEricsson."Carl-Henric Svanberg, President and CEO of Ericsson said:"The agreement between Nortel and Ericsson brings togetherleading-edge wireless innovation from two of the world's toptelecommunications suppliers. We at Ericsson look forward tointegrating Nortel's products and talented employees into ourbusiness and realizing the full potential of our combined strengths.Ericsson is committed to meeting the needs of our new CDMA customerstoday and bringing the next generation of mobile broadband to theworld with LTE."While today's auction is a significant step in the overall saleprocess, it is not the final step. Nortel will work diligently withEricsson to close the sale later this year. Nortel will seek Canadianand U.S. court approvals of the proposed sale agreement at a jointhearing on July 28, 2009.As previously announced in the Company's June 19 and July 20, 2009press releases, the Company does not expect that its commonshareholders or the preferred shareholders of Nortel Networks Limitedwill receive any value from the creditor protection proceedings andexpects that the proceedings will result in the cancellation of theseequity interests.Media and Analyst Call: Representatives from Nortel and Ericsson willhold a conference call for media and analysts on Monday, July 27,2009 at 10 am EDT. Information on how to join that call will beavailable athttp://www.nortel.com/corporate/investor/events/072709/index.html onMonday morning.About NortelNortel delivers communications capabilities that make the promise ofBusiness Made Simple a reality for our customers. Our next-generationtechnologies, for both service provider and enterprise networks,support multimedia and business-critical applications. Nortel'stechnologies are designed to help eliminate today's barriers toefficiency, speed and performance by simplifying networks andconnecting people to the information they need, when they need it.For more information, visit Nortel on the Web at www.nortel.com . Forthe latest Nortel news, visit www.nortel.com/news.Certain statements in this press release may contain words such as"could", "expects", "may", "should", "will", "anticipates","believes", "intends", "estimates", "targets", "envisions", "seeks"and other similar language and are considered forward-lookingstatements or information under applicable securities laws. Thesestatements are based on Nortel's current expectations, estimates,forecasts and projections about the operating environment, economiesand markets in which Nortel operates. These statements are subject toimportant assumptions, risks and uncertainties that are difficult topredict, and the actual outcome may be materially different. Further,actual results or events could differ materially from thosecontemplated in forward-looking statements as a result of thefollowing (i) risks and uncertainties relating to Nortel's CreditorProtection Proceedings including: (a) risks associated with Nortel'sability to: stabilize the business and maximize the value of itsbusinesses; obtain required approvals and successfully consummatepending and future divestitures; successfully conclude ongoingdiscussions for the sale of Nortel's other assets or businesses;develop, obtain required approvals for, and implement a courtapproved plan; resolve ongoing issues with creditors and other thirdparties whose interests may differ from Nortel's; generate cash fromoperations and maintain adequate cash on hand in each of itsjurisdictions to fund operations within the jurisdiction during theCreditor Protection Proceedings; access the EDC Facility given thecurrent discretionary nature of the facility, or arrange foralternative funding; if necessary, arrange for sufficientdebtor-in-possession or other financing; continue to have cashmanagement arrangements and obtain any further required approvalsfrom the Canadian Monitor, the U.K. Joint Administrators, the FrenchAdministrator, the Israeli Joint Administrators, the U.S. Creditors'Committee, or other third parties; raise capital to satisfy claims,including Nortel's ability to sell assets to satisfy claims againstus; maintain R&D investments; realize full or fair value for anyassets or business that are divested; utilize net operating losscarryforwards and certain other tax attributes in the future; avoidthe substantive consolidation of NNI's assets and liabilities withthose of one or more other U.S. Debtors; attract and retain customersor avoid reduction in, or delay or suspension of, customer orders asa result of the uncertainty caused by the Creditor ProtectionProceedings; maintain market share, as competitors move to capitalizeon customer concerns; operate Nortel's business effectively inconsultation with the Canadian Monitor, and work effectively with theU.K. Joint Administrators, French Administrator and Israeli JointAdministrators in their respective Administration of the EMEAbusinesses subject to the Creditor ProtectionProceedings; actively and adequately communicate on and respond toevents, media and rumors associated with the Creditor ProtectionProceedings that could adversely affect Nortel's relationships withcustomers, suppliers, partners and employees; retain and incentivizekey employees and attract new employees, as may be needed; retain, orif necessary, replace major suppliers on acceptable terms and avoiddisruptions in Nortel's supply chain; maintain current relationshipswith reseller partners, joint venture partners and strategic alliancepartners; obtain court orders or approvals with respect to motionsfiled from time to time; resolve claims made against Nortel inconnection with the Creditor Protection Proceedings for amounts notexceeding Nortel's recorded liabilities subject to compromise;prevent third parties from obtaining court orders or approvals thatare contrary to Nortel's interests; reject, repudiate or terminatecontracts; and (b) risks and uncertainties associated with:limitations on actions against any Debtor during the CreditorProtection Proceedings; the values, if any, that will be prescribedpursuant to any restructuring plan to outstanding Nortel securities;the delisting of NNC common shares from the NYSE; and the delistingof NNC common shares and NNL preferred shares from the TSX; and (ii)risks and uncertainties relating to Nortel's business including: thesustained economic downturn and volatile market conditions andresulting negative impact on Nortel's business, results of operationsand financial position and its ability to accurately forecast itsresults and cash position; cautious capital spending by customers asa result of factors including current economic uncertainties;fluctuations in foreign currency exchange rates; any requirement tomake larger contributions to defined benefit plans in the future; ahigh level of debt, arduous or restrictive terms and conditionsrelated to accessing certain sources of funding; the sufficiency ofworkforce and cost reduction initiatives; any negative developmentsassociated with Nortel's suppliers and contract manufacturersincluding Nortel's reliance on certain suppliers for key opticalnetworking solutions components and on one supplier for most of itsmanufacturing and design functions;potential penalties, damages or cancelled customer contracts fromfailure to meet contractual obligations including delivery andinstallation deadlines and any defects or errors in Nortel's currentor planned products; significant competition, competitive pricingpractices, industry consolidation, rapidly changing technologies,evolving industry standards, frequent new product introductions andshort product life cycles, and other trends and industrycharacteristics affecting the telecommunications industry; anymaterial, adverse affects on Nortel's performance if its expectationsregarding market demand for particular products prove to be wrong;potential higher operational and financial risks associated withNortel's international operations; a failure to protect Nortel'sintellectual property rights; any adverse legal judgments, fines,penalties or settlements related to any significant pending or futurelitigation actions; failure to maintain integrity of Nortel'sinformation systems; changes in regulation of the Internet or otherregulatory changes; and Nortel's potential inability to maintain aneffective risk management strategy.For additional information with respect to certain of these and otherfactors, see Nortel's Quarterly Report on Form 10-Q for the quarterended March 31, 2009 and Annual Report on Form 10-K for the yearended December 31, 2008 and other securities filings with the UnitedStates Securities and Exchange Commission. Unless otherwise requiredby applicable securities laws, Nortel disclaims any intention orobligation to update or revise any forward-looking statements,whether as a result of new information, future events or otherwise.(i) Nortel, the Nortel logo and the Globemark are trademarks ofNortel Networks.Contacts:NortelKaren Monaghan(613) 763-1133Email: kmonagha(at)nortel.comNortelJay Barta(972) 685-2381Email: jbarta(at)nortel.comWebsite: www.nortel.comThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 25.07.2009 - 06:55 Uhr
Sprache: Deutsch
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