Business
Companies Reach Definitive Agreement for the Sale of Nortel's UMTS Access Business to Alcatel-Lucent
Companies Reach Definitive Agreement for the Sale of Nortel's UMTS Access Business to Alcatel-Lucent.
About this update from Newterra Resources, Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, Dec. 4 /CNW/ - Nortel(x) (NYSE/TSX: NT) today announced that it\nhas reached a definitive agreement for the sale of certain assets and the\ntransfer of certain liabilities related to the company's UMTS access business\nto Alcatel-Lucent. It follows the signing of the non-binding Memorandum of\nUnderstanding between the two companies announced September 1, 2006. The\ntransaction is a US$320 million cash transaction, less significant deductions\nand transaction related costs. The parties have agreed to target a closing at\nyear end, and in any event, a closing within 90 days of today's announcement.\nApproximately 1,700 of Nortel's UMTS access business employees will transfer\nto Alcatel-Lucent.\n\n\n\"The completion of this transaction will allow Nortel to increase\nresources dedicated to our strategic business priorities. It also positions\nAlcatel-Lucent to be successful in the UMTS access market with an infusion of\ngreat technology and great people,\" said Mike Zafirovski, president and chief\nexecutive officer, Nortel. \"This transaction is a win-win for both companies,\nbut more importantly, for our customers. We will continue to work with\nAlcatel-Lucent to ensure the transition is seamless to our customers.\"\n\n\n\"Nortel is committed to developing the wireless technologies that will\ndeliver 4G Mobile Broadband and this provides one more step in reaching that\nobjective,\" said Richard Lowe, president, Mobility and Converged Core\nNetworks, Nortel. \"Nortel is focused on providing the foundation for the\ncoming mobile video and multimedia revolution that mobile network operators\nwill soon face. At the same time, we will continue delivering superior value\nto our GSM and CDMA customers, as well as our customers that have deployed our\nUMTS core networks\".\n\n\nCompletion of the transaction is subject to, among other things, the\nconclusion of consultations with works councils and other employee\nrepresentatives, finalization of the terms of certain ancillary agreements\nincluding a transitional services agreement whereby Nortel will provide to\nAlcatel-Lucent setup, infrastructure and application services for a defined\nperiod of time as well as customary closing conditions including regulatory\napprovals.\n\n\nAbout Nortel\n\n\nNortel is a recognized leader in delivering communications capabilities\nt...