The Deal is Done!

Nortel has finally completed the sale of its UMTS business unit to Alcatel-Lucent (Isn’t it time for a new name yet?) for $320-million in cash – “less significant deductions and transaction related costs” (How much is “significant”?). Just out of curiosity, does AL simply wire the money into Nortel’s bank account, or does Patricia Russo write a check to Nortel CEO Mike Zafirovski, or does Brinks roll up to Nortel’s corporate HQ and drop off a few dozen bags of cash?

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4 Responses to “The Deal is Done!”

  1. Rob Hyndman Says:

    You’re assuming that the deductions and costs are less than $320M.


  2. Colin Says:

    Most of the UMTS nodes that Alcatel has purchased run on propriatry Nortel hardware.

    I wonder how much revenue Nortel will make from selling the hardware platform to Alcatel.

    Also It would be interesting if Alcatel has agreed a minimum buy.

  3. Appl Says:

    You’re assuming that the deductions and costs are less than $320M.
    significant deductions- what about 50%? it’s significant, isn’t it?
    what about 20% costs?
    so in total it’s only 70% of the deal
    so, Yes, deductions and costs are less than $320 mill!
    I can be wrong but not much
    I estimate my error at 10%
    any more questions?
    what about downgrades and upgrades for NT stock?
    3-Jan-07 Bernstein Downgrade Mkt Perform Underperform
    Do you like it?

  4. umts Says:

    And now?

    320M$ is not so much… and Mike Z will discover at the first significant GSM trap that big problems have never been solved in india, even if it was hidden to him as well as all top management.

    Reason: The “deal” was current running products maintenance to India, new ones studied in France by what was (and have always be, whatever was the organisation) GSM-UMTS R&D teams. So saying that some maintenance was still in france was risky as it could have meant, in some high management heads, that work bandwith could be over limit => no more new products studies here! So it was necessary to hide this, precisely because the work sharing mode compeled us to do so to avoid a slow dead…

    And it is not a problem of sharing information… It’s a problem of education: India make pretty good high level coders for a XP PC or a unix workstation… but they definitively lack a generalist formation to fully understand specific systems at the intersection of several areas of knowledge (telecom/hardware/software/manufacturing basics needed…).

    That’s why so much industries are leaving bangalore for this kind of development… The fact it appeared to work fine in Nortel was illusion!

    Good luck to the customers…

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