July 28, 2009

Canada to review Nortel sale

The Canadian government said it would review the sale of technology giant Nortel Networks Corp. to a Swedish company to see if it fit national interests.

The issue will come up as to whether this is a bid that is acceptable to the government of Canada under the Investment Canada rules, Industry Minister Tony Clement said.

The Toronto Star reported the Swedish company, Ericsson, has bid $1.13 billion for the Canadian firm. But pressure had mounted for the government to review the sale.

Liberal Party leader Michael Ignatieff had pressed for a review on behalf of all Canadians "¦ to ensure that the intellectual property developed with the investment of taxpayers' dollars continues to benefit us all.

Canada has a long tradition of welcoming foreign direct investment, Ignatieff said. However, we must also be certain we can intervene to ensure Canadian interests, he said.