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Nortel gets court approval for packet core network component sale to Hitachi

TORONTO - Nortel Networks Corp. has received a green light from Canadian bankruptcy courts on the sale of its next-generation packet core network component assets to Japanese electronics manufacturer Hitachi Ltd. for US$10 million.

TORONTO - Nortel Networks Corp. has received a green light from Canadian bankruptcy courts on the sale of its next-generation packet core network component assets to Japanese electronics manufacturer Hitachi Ltd. for US$10 million.

The insolvent telecom equipment maker confirmed Wednesday that the deal was approved without any changes by a bankruptcy court judge in Ontario and by a U.S. court in Delaware.

Included in the deal is software supporting data transfer over existing wireless networks and next-generation wireless technology and the non-exclusive licence of some patents and other intellectual property.

The sale does not include legacy packet core components for Nortel's third-generation Universal Mobile Telecommunications System (UMTS) and Global System for Mobile (GSM) businesses.

Nortel extended Wednesday a deadline for offers for its GSM business that was set for Nov. 9. Qualified bidders are now required to submit offers by Nov. 16.

The company plans to sell its global GSM/GSM-R business, including the patents predominantly used in the GSM business and granting of non-exclusive licenses of other relevant patents, in an open auction.

Nortel has been selling off its global operations piece by piece after seeking court protection from creditors in January. Earlier this month, it received approval for a US$521-million bid by Ciena Corp. for its Optical Networking business as part of an auction.

Last month, Nortel announced its Enterprise Solutions division would be sold to New Jersey-based Avaya for $900 million. Avaya had originally bid $475 million in July but then had to sweeten the offer to win an auction that began Sept. 11 and lasted several days.

Prior to that, LM Ericsson of Sweden agreed to pay $1.13 billion for Nortel's wireless network business, beating out a $650-million stalking horse bid put forward by Nokia Siemens, a joint venture between Finland's Nokia Corp. (NYSE:NOK) and Germany's Siemens AG (NYSE:SI).

 
 
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