Alcatel to Buy Nortel 3G Unit

Alcatel (ALA Quote) signed a nonbinding memorandum of understanding to buy Nortel's (NT Quote) wireless network infrastructure business for $320 million.

Paris-based Alcatel, which is in the process of buying Nortel rival Lucent (LU Quote), said it will acquire Nortel's universal mobile telecommunications, or UMTS, radio access business. The deal will help Alcatel "expand its global leadership in broadband access."

A significant majority of employees of Toronto-based Nortel's UMTS access business will be transferred to Alcatel. Following the transaction, Alcatel would serve an additional 14 UMTS customers around the world for a combined global footprint that amounts to one in four UMTS operators. ...