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Nortel belongs to Ericsson now V.J. | , 12:15 p.m. July 26, 2009 2009-07-26

Ericsson will buy the wireless-equipment unit of Nortel Networks Corp for $1.13 billion in cash after the later has turned down the offers made by Nokia Siemens Network and MatlinPatterson Global Advisers LLC.

According to reports, the auction process has been completed and Ericsson said in a statement on its website that Nortel will be bought for the aforementioned sum. Norteld is selling off businesses after filing for bankruptcy protection six months ago.

Research in Motion has also expressed interest in acquiring Nortel business. The company grew 13 percent in the first quarter as the mobile phone industry shrank.

According to Bloomberg, at least 2,500 Nortel employees will be offered positions with Ericsson. Nortel also plans a similar auction for its corporate- networking business this quarter.

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