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Nortel gets permission to sell telephone service unit to Avaya
By siliconindia
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Thursday, 17 September 2009, 21:01 IST
Bangalore: Nortel Networks can finally sell its telephone-service unit to Avaya. The case had gone to court, when Verizon Communications claimed that the sale would harm U.S. national security.
U.S. bankruptcy Judge, Kevin Gross in Delaware approved the $915 million sale after overruling the objection. The final price was about $440 million more than the starting offer, or about $8 million for each hour of the 50-hour auction, said Derrick Tay, a Nortel Attorney.
The sale is expected to close late in Q4 2009, subject to court approvals in the U.S., Canada, France and Israel, as well as regulatory approvals, other customary closing conditions and certain post-closing purchase price adjustments.
Toronto-based Nortel filed for bankruptcy earlier this year, and has been selling off key parts of its business to pay creditors.
