updated 05:55 pm EDT, Tue July 19, 2011
Canada won't look into $4.5b Nortel patent sale
Unlike the rumored investigation by the Department of Justice and the FTC of the recent Nortel patent buy, the Canadian government won't review it, the Industry Minister Christian Paradis said on Tuesday. While the Investment Canada Act requires foreign investments of more than $328 million must be reviewed, the book value of the $4.5 billion deal may be much lower, said a Tuesday report.
"Based on the information provided by the investor and Nortel's 2010 audited financial statements, the acquisition of the Nortel patents is not subject to review for net benefit under the Act," a statement from Paradis read.
Canadian and US courts in charge of Nortel's bankruptcy proceedings approved the sale of the patents on July 11 to a conglomerate of companies that included Apple, Microsoft, RIM, EMC Corp, Ericsson and Sony. There were 6,000 patents bought out, with Google also unsuccessfully bidding on them to protect Android from frivolous lawsuits.