Nortel Fire Sale Update

10:35 AM -- As we enter the final quarter of 2009, there's no let-up in Nortel Networks Ltd. fire sale action.

The troubled Canadian vendor has just announced plans to sell its GSM and GSM-R business (specific systems for on-train mobile comms) though an "open auction" process. The vendor says it has already "seen interest in this business during extensive initial discussions." (See Nortel to Sell GSM Biz.)

Meanwhile, the bankruptcy courts have set a deadline of October 26 for Nortel to announce a successful bidder for its packet core business, which it put up for sale in September. (See Nortel's Next Auction: The Packet Core.)

Of greater concern for Nortel is an impending court case, set for October 13, that will deal with an outstanding $3 billion tax bill. This Bloomberg report has the details.

— Ray Le Maistre, International News Editor, Light Reading