Nortel Auction: NSN Bid $1B+

11:15 AM -- Nokia Networks is the fallback buyer of Nortel Networks Ltd. 's CDMA and LTE (Long Term Evolution) access assets if, for any reason, the winning bid of $1.13 billion by Ericsson AB (Nasdaq: ERIC) is rejected by a joint hearing of the U.S. Bankruptcy Court and Ontario Superior Court of Justice at 1:00 p.m. (Eastern) on Tuesday, July 28. (See Ericsson Delivers Knockout Blow to NSN.)

Documents filed with the U.S. Bankruptcy Court for the District of Delaware (which has been overseeing Nortel's affairs since the vendor sought protection from its creditors on January 14) show that NSN's final bid of $1,032,500,000 has been selected as "the Alternate Bid." (NSN's original bid, made in June, was $650 million.)

One way in which Ericsson's bid might be rejected is if another company submits an acceptable objection: The documents also state that any objections to Ericsson's successful bid must be filed and served to the bankruptcy court by 4:00 p.m. today (Monday, July 27).

It's hard to imagine there won't be a single objection. NSN will be looking for any way to derail Ericsson's winning bid, while private equity firm (and Nortel bondholder) MatlinPatterson Global Advisers, which also took part in Friday's auction, will not want to give up without a fight.

And then there's BlackBerry ... (See RIM Cries Foul Over Nortel Bidding Process.)

— Ray Le Maistre, International News Editor, Light Reading

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