$725 Million Offer to Acquire Nortel's CDMA and LTE Access Assets
$725 Million Offer to Acquire Nortel's CDMA and LTE Access Assets
23rd July , 2009
US : MPAM Wireless submitted to Nortel Networks Corp. ("Nortel") and its creditor constituencies a proposal to acquire substantially all of Nortel's CDMA and LTE Access assets for US$725 million. MatlinPatterson believes that its alternative proposal is higher and better than the "stalking horse" bid from Nokia Siemens Networks B.V. ("NSN") and provides, on multiple fronts, a superior outcome for Nortel and all of its stakeholders.
MatlinPatterson has been closely following the Nortel bankruptcy and has engaged a highly experienced set of advisors, including a team of industry experts led by former Nortel executives Dion Joannou, Richard Piasentin and Tony Pirih, to assist in evaluating transaction alternatives. Following Nortel's announcement of NSN's selection as a "stalking horse" to acquire the CDMA and LTE Access assets, MatlinPatterson recognized it would have to expedite its strategy to form a "New Nortel" in order to maximize value for all stakeholders.
Through an exhaustive due diligence process led by its team of advisors, which also includes former executives of AT&T Wireless, Alltel and Motorola, MatlinPatterson determined that these assets can form the basis of a stand-alone enterprise with long-term viability that will meet the needs of all stakeholders. This independently held business would provide a range of opportunities -- from additional bolt-on acquisitions to partnerships to reinvention and new ideas from within the technology asset base.