Nortel Networks could face further job cuts if a bidding war breaks out for its assets, says an executive at Nokia Siemens, which is leading bids for the fallen technology giant’s wireless business.

Sue Spradley, North American head for Nokia Siemens Networks, says she anticipates more interested bidders will materialize before the July 21 deadline for submissions.

But she said it will be a fine balancing act between properly valuing Nortel and being forced to overpay and later slash operations to recoup costs.

Nortel announced last month that it had signed a deal to sell most of its wireless business to Nokia Siemens for $650 million US.