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Research In Motion Asks Legislators to Block Ericsson-Nortel Deal

4:53 pm on August 7, 2009 | Category: Business, Corporate, Editorials, Regulation

BlackBerry manufacturer, Research In Motion, is asking the Canadian government to block Ericsson’s $1.13 billion acquisition of Nortel’s wireless assets.

“The Nortel transaction as currently structured isn’t in Canada’s best interest,” said RIM co-CEO, Mike Lazaridis, at today’s Parliamentary hearing on the matter. “Minister Clementâ€™s stature is such that he may well be able to fashion, over the next few weeks, an outcome that serves the interests of all parties and of Canadians.”

Whether such an outcome would really “serve the interest of Canadians” is, of course, debatable; but there’s no question that it would benefit the interests of Research In Motion.

In this case, the technology giant is using its made-in-Canada status to gain an unfair bargaining advantage in its quest to acquire Nortel. RIM was unable to reach a mutually-agreeable deal with Nortel executives, and is now appealing to the protectionist instincts of Canadian politicians in order to get what it wants.

Research In Motion is a great Canadian company, which built an empire from the ground up, providing a service that millions want, and surviving the attacks of litigious patent sharks. Does anyone else find it embarrassing that they’re now whining for government favours?

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