Research in Motion could still bid for Nortel


Research in Motion could still bid for Nortel

Warwick Ashford

Canada's industry minister Tony Clement has encouraged Blackberry maker Research in Motion (RIM) to bid in an auction for the mobile network unit of bankrupt Nortel Networks.

Nortel filed for bankruptcy protection in January in the US and Canada to give the company the opportunity to deal with costs, debts and restructuring.

Fellow Canadian company RIM has said it is willing to pay $1.1bn for the Nortel business, but has so far not entered a formal bid for the auction, which takes place today.

Some analysts believe it may too late for RIM to enter a bid after it objected to Nortel's conditions. Bids officially closed yesterday afternoon.

But Clement said RIM is not necessarily out of the running and may even team up with one of the registered bidders, according to Reuters.

At least three offers have come from foreign companies, but Clement said he would welcome a Canadian bid or Canadian participation in a bid.

Nokia Siemens Networks, MatlinPatterson and Ericsson have put in bids ranging from $650m to $730m for Nortel's technologies, far below RIM's valuation.

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