Nortel Networks has entered into a 'stalking horse' asset sale agreement with Nokia Siemens Networks (NSN) for the sale of substantially all of its CDMA business and LTE Access assets for $650 million.

The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN.  This represents a significant portion of the employees associated with the assets being sold.

In addition to announcing this sale agreement, Nortel has also made advancements in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales.

Commenting on the announcements, Mike Zafirovski, President and CEO, Nortel, said, "Maximizing the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible.  This will ensure Nortel's strong assets - technologies, customer relationships, and employees - continue to play an important role in driving the future of communications. We also believe this will help provide clarity for our customers and employees."

The wireless business is the second largest supplier of CDMA infrastructure in the world.  It does business with three of the five top CDMA operators globally, including Verizon Wireless.

Commenting on the wireless business announcement, Richard Lowe, President, Carrier Networks, added, "Seeking a strong and stable buyer is the best path forward for our CDMA business and LTE Access assets. If successfully completed, this transaction would give many of our CDMA customers a clear roadmap for the future evolution of their networks and the opportunity to extend their relationship with a long-term partner. Further, we expect that a significant portion of the employees associated with the assets being sold would be able to continue their innovative work."