7:50 AM Equipment maker among four bidders reportedly shortlisted for Nortel's stake in LG-Nortel

Michelle Donegan

September 2, 2009

1 Min Read
AlcaLu Eyes LG-Nortel

7:50 AM -- In the latest installment of Nortel Networks Ltd. 's asset sale saga, four companies reportedly have been shortlisted as bidders for Nortel's controlling stake in LG-Ericsson Co. Ltd. , the joint venture with LG Electronics Inc. (London: LGLD; Korea: 6657.KS) .

According to this Reuters story, the South Korean daily news site eDaily reports that Alcatel-Lucent (NYSE: ALU), Sony Ericsson Mobile Communications , One Equity Partners , and Korean investment company SkyLake Incuvest are bidders for Nortel's 50 percent (plus one share) stake in LG-Nortel.

The LG-Nortel joint venture was not included in Nortel's bankruptcy filings in January this year, but the Canadian vendor is looking to sell this stake to raise cash. Nortel's stake in the venture could be worth $500 million, according to the Financial Times. (See Nortel Offers Up Its LG-Nortel Stake and Nortel Files for Bankruptcy Protection.)

Sony Ericsson has denied that it is pursuing Nortel's share in the joint venture.

LG-Nortel has been busy lately in the next-generation access technologies in mobile and fixed networks -- namely, Long Term Evolution (LTE) and WDM-PON. LG-Nortel recently won a WDM-PON deal in Norway. (See WDM-PON Update, LG-Nortel Wins Norway PON Deal, LG-Nortel Extends WDM-PON Distribution, and Who Makes What: GPON & WDM-PON Equipment.)

And in LTE, the joint venture recently staged the first data transmission handover between CDMA and LTE networks using LG's dualmode device, the M13, which is an important development for the U.S. market as Verizon Wireless pursues an aggressive LTE launch schedule for next year. (See LG, Nortel Do LTE/CDMA Handoff.)

— Michelle Donegan, European Editor, Unstrung

About the Author(s)

Michelle Donegan

Michelle Donegan is an independent technology writer who has covered the communications industry for the last 20 years on both sides of the Pond. Her career began in Chicago in 1993 when Telephony magazine launched an international title, aptly named Global Telephony. Since then, she has upped sticks (as they say) to the UK and has written for various publications including Communications Week International, Total Telecom and, most recently, Light Reading.  

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