Ottawa will not intervene in a dispute between insolvent Nortel Networks and Research In Motion over the bidding process for Nor­tel’s prized wireless division, Industry Minister Tony Clement said.

Nortel has received separate bids from European and U.S. companies for its wireless and corporate telephone systems unit. But under the auction rules, RIM is not allowed to bid for all the assets it wants, even though it says it is willing to fork out up to $1.1 billion US.

Late Monday, RIM said it has been prevented from making an offer and asked Ottawa to review the bidding process, suggesting that it has been shut out because of its desire to buy other Nortel assets as well.