Nokia Siemens In Deal To Buy Nortel Wireless Units

Under the deal more than 2,500 Nortel employees, mostly in Canada and the United States, would be transferred to Nokia Siemens Networks. Canada's government-owned export credit agency, Export Development Canada, would support the transaction with a $300 million loan commitment, Nokia Siemens said.

Toronto-based Nortel reported a first-quarter net loss this year of US$507 million with revenue falling by 37 percent from 2008 to $1.7 billion.

Nortel's customers, including Bell — Canada's leading telecommunications company — welcomed the deal which Nokia Siemens said would ensure the continuation of Nortel's research and development sector.

"As Nortel's largest customer in Canada, Bell supports Nokia Siemens' plan to continue to foster Nortel's long history of research and development in Canada," said Stephen Howe, spokesman for Bell Mobility.

"This news eliminates industry uncertainty and enhances CDMA ... today and in the future," said Dan Hesse, CEO of Kansas-based Sprint Nextel.

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