Nortel auctions wind down with GDNT China sale

Nearly two full years after it first went into administration, Nortel has sold its final substantial asset, China-based Guandgong Nortel Telecommunication Equipment (GDNT), to Ericsson China for $50m in cash. Nortel Networks Ltd and Nortel China Ltd together owned 62% of the GDNT joint venture,

Nearly two full years after it first went into administration, Nortel has sold its final substantial asset, China-based Guandgong Nortel Telecommunication Equipment (GDNT), to Ericsson China for $50m in cash.

Nortel Networks Ltd and Nortel China Ltd together owned 62% of the GDNT joint venture, which specialises in high-end comms equipment including CDMA, GSM and DMS technologies.

In 2007 the unit made total sales of 31 billion Yuan, with export sales amounting to $400m.

The sale is scheduled to close during the first calendar quarter of 2011, and Ericsson has committed to preserving all 1,100 jobs at the unit.

"This sale is a milestone in that it is the last of Nortel's significant business divestitures, which sales have preserved both Nortel's technology innovation and its rich base of skilled employees," said Nortel chief strategy officer, George Riedel.

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