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FWIW...$4.5 Billion Nortel Auction Under Investigation by Canadian Government.

Federal Industry Minister Christian Paradis is asking his staff to investigate whether Canada’s foreign investment rules should apply to the landmark US$4.5-billion sales of 6,000 patents once owned by Nortel Networks Inc.

On Wednesday, the newly minted Minister of Industry announced his office would begin a review of the sale of the Nortel patents to a group of six companies — including Apple Inc., MicrosoftCorp. and Canadian BlackBerry maker Research In Motion Ltd. — should be subject to a review.

“The Minister has asked his officials to look into how the Investment Canada Act may apply to this transaction,” Lauren Hébert, a spokeswoman for the ministry said.

All acquisitions of Canadian businesses valued in excess of $312-million by non-Canadian entities must be determined to be of a “net benefit” to Canada through a formal government review, according to the law.

Last November, then-Industry Minister Tony Clement blocked a US$38.6-billion hostile takeover bid of Potash Corp. of Saskatchewan by Australia-based BHP Billiton Ltd., saying the deal was of “no net benefit” to Canada. It was only the second time in Canadian history the government had invoked the rule.

It is unclear whether Nortel’s patent portfolio constitutes a business under Canadian law, a requirement for a review to take place.



Read it on Global News: Nortel patent sale could face federal review