Wednesday, July 29, 2009

Nortel Networks: The courts have approved the sale to Ericsson

[teleclick] Ericsson’s $1.13 billion acquisition of Nortel Networks was approved by bankruptcy courts in both Ontario and the U.S. earlier today, but still faces challenges from a number of Canadian politicians.

Ontario’s Finance Minister, Dwight Duncan, called on the federal government to block the transaction; as did federal NDP leader, Jack Layton, arguing that Nortel represents decades of Canadian innovation and should remain under Canadian ownership.

Canada’s Conservative government has agreed to review the deal, but Industry Minister Tony Clement says it would be premature to take action at the present time.

“What I am saying, we are obviously reviewing the bid, and we will have more to say once that review is done,” Clement told reporters in Ottawa.

Columnist, John Ivison, laid out the case against government intervention in today’s National Post, presenting evidence that the free flow of corporate capital is of net benefit to Canada.

Ericsson-Nortel Deal Approved by Courts, Challenged by Politicians

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