OK – all of those who think that the government should create some kind of reason or regulation that would prevent the sale of Nortel and it’s wireless technology to Ericsson of Sweden – take a pill!
Nortel is an empty shell of a company, that is bankrupt and has gone through more than one accounting scandal in recent years. It is a very good example of bad management. It needs to be absorbed by a successful firm. And RIM is not that firm. RIM didn’t want to play by the rules that the bankruptcy court set out, while others (notably Nokia and Ericsson) were. The bankrupty court did it’s job in balancing the rights of Nortel’s creditors and shareholders – of which RIM was neither and therefore doesn’t have any standing to complain.
And the opposition parties are simply using this as fodder to fire at the government, hoping anything will stick to Mr. Harper. But there is no reason why Nortel’s technology or assets are important from a national security or national interest. And government interference will tarnish Canada’s image as a fair and good place to do business. What foreign firm is going to be willing to invest in this country if the government goes around deciding (for purely political reasons) to interfere in such transactions? They will be fewer in number, and direct foreign investment brings money into Canada and increases our standard of living.
Just say yes to Ericsson’s purchase of Nortel wireless!