Nortel-Ericsson deal signed off

Summary

In this news article, it talks about the sale of Nortel Networks Corp. assets being signed off by Canada's industry minister Tony Clement. The key wireless company's assets has been sold to Telefon AB LM Ericsson. Research In Motion Ltd. claims that they were blocked from bidding and says that the technologies of the Canadian company Nortel, should stay Canadian. Clement dismisses the allegations saying, "There are no grounds to believe this transaction could be injurious to Canada's national security." Clement says that his staff did not discover any evidence that the courts blocked the RIM to prevent them from bidding for the assets and that the sale is also beneficial to Canada.


Connection

As long as this sale doesn't contradict any GAAP, like the ones in the accounting text book, I don't see a clear problem with this deal.


Reflection

I don't think there is anything wrong with this deal as long as what Mr. Clement said about it posing no threat to national security and that it is indeed beneficial to Canada.



Source:
http://www.theglobeandmail.com/globe-investor/ottawa-signs-off-on-nortel-ericsson-deal/article1290360/