Nortel battles RIM in the free press

Nortel-logo187X46.JPGRIM-logo111X74.jpgTORONTO — In a continuation of the odd negotiation by press release initiated earlier this week by Research in Motion (RIM), the rapidly dis-assembling Nortel Networks denies that it has been unreceptive to RIM's wooing. It simply insists that all bidders for its parts must comply with the same bidding rules. And it maintains that RIM won't sign the agreement that the court has approved for all bidders.
"Nortel had been in discussions with RIM regarding a related transaction but those discussions are currently on hold," Nortel says in a press release. "Since the approval of the bidding procedures, Nortel has engaged with a number of potential bidders regarding the CDMA and LTE assets, including RIM. Other parties moved expeditiously to comply with the court approved procedures to become qualified bidders, and RIM did not object to the approval of these procedures during the court process. It was not until July 15 that RIM submitted a letter to Nortel asking to be a qualified bidder and, since that time, Nortel has diligently attempted to work with RIM on acceptable confidentiality terms relating to Nortel's valuable intellectual property assets. RIM has refused, however, to comply with the court approved procedures."
The "court-approved" bidding process requires a confidentiality agreement. RIM apparently balks at some of its provisions. In any event Nortel says the auction will go forward on Friday (July 24) as planned. Both parties have already saved a bundle by exposing their frustrations in the press for free rather than take them to court for millions a day in legal fees.

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