Ericsson's deal for Nortel is DOA

McQueen%2C%20Mark44X64.jpgPosted by Mark McQueen, CEO Wellington Financial LP
It’ll be a few weeks, maybe even months, before every last word is said on the topic of Ericsson’s bid for Nortel’s LTE and CDMA business. But I’ve had an epiphany; the deal isn’t going to happen. For the same reason that ATK / MDA wasn’t approved (see prior post “Prentice is right to reject MDA space deal” April 10-08). No net benefit to Canada; at least not that anyone has seen so far.
After Inco, Falconbridge, Labatt, Molson, Sleeman, ATI, Dofasco, Corel, Cognos, Westcoast Energy, etc., etc., the nation has had enough. Some of these firms matter to the country’s economic future, while others did not. We’re all for a free market, and we’ve lived and died by the sword of Free Trade for the past 20 years. But strategic assets are just that.
Whether the resources be IP or beneath the soil. They’re worth thinking carefully about; ’cause once they’re gone, they’re gone.
I think Nortel’s crown jewels matter. As Minister Clement is learning on the Stelco file, it’s very hard to unscramble the egg once control and ownership have left domestic hands.
In the case of Nortel’s CDMA and LTE intellectual property; let’s not tempt fate.

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