Hans Vestberg (L), Ericsson's Chief Financial Officer (CFO) and Executive Vice President, shakes hands with Chief Executive Officer Carl-Henric Svanberg (R) as Ericsson board chairman Michael Treschow looks on during a news conference in Stockholm June 25, 2009. Telecom equipment maker Ericsson said on Thursday it has appointed Hans Vestberg as the company's new president and chief executive officer, replacing Carl-Henric Svanberg who has accepted a position as chairman of BP.© Bob Strong / Reuters
Swedish phone giant Ericsson said it is confident it will win formal approval of its purchase of Nortel Network Corp. 's wireless assets despite objections from Research In Motion Ltd. "We feel confident that this will get through," Hans Vestberg, Ericsson's chief financial officer and incoming Chief Executive Officer told analysts on a conference call Monday morning.
Telefon AB LM Ericsson had the winning bid in an auction held Friday for Nortel's wireless division, offering $1.1-billion (U.S.). Bankruptcy courts in Ontario and Delaware must approve the purchase and a hearing is slated for Tuesday afternoon. The deal also requires approval from regulators in Canada and United States.
RIM has alleged that it was shut out of the bidding for the assets by Nortel and it said Sunday that it was still interested in the division. It's not clear what RIM will do but the company could raise objections in court Tuesday or press the federal government to overturn the purchase.
Mr. Vestberg acknowledged that there were still "issues" left to be resolved before the deal can close. But he played down RIM's concerns.
The Nortel division gives Ericsson a stronger position in North America. The deal includes Nortel's existing wireless operations and the company's research into the next generation of wireless technology called Long-Term Evolution. Mr. Vestberg said Ericsson will get some of Nortel's patents and license other patents.
Mr. Vestberg said he plans to "sit down" with Canadian regulators and discuss possible financing "from them. . ." He did not elaborate.
Export Development Canada agreed to provide a $300-million loan to finance Nokia Siemens Networks' $650-million bid for Nortel's wireless assets. Phil Taylor, an EDC spokesman, has said the Crown corporation would consider financing any future deals for Nortel assets that are based on commercial terms and provide a benefit to Canada.
Paul Waldie