Replies to post #8333 on Nortel Networks (fka NRTLQ)

[alexander77]

Germany:+32%;current volume:6x 3month average volume;calculation:

Total debt: 5,8 billion dollar
O/S: +/- 500,000,000 http://www.otcmarkets.com/stock/NRTLQ/company-info

Debts already repaid: 3,2 billion dollar
Remaining debt: 2,6 billion dollar

"Nortel liet een schuld achter van 5,8 miljard dollar. De bewindvoerders hebben na het faillissement naar schatting 3,2 miljard dollar bijeengesprokkeld uit de verkoop van bedrijfsonderdelen aan concurrenten als Avaya en Ericsson om de schuldeisers af te betalen. De patentportefeuille is een van de laatste kroonjuwelen van Nortel die in de verkoop gaan."

it's a an article from a Dutch business magazine

http://www.automatiseringgids.nl/markt-monitor/champions-league/2011/24/veiling-patenten-nortel-week-uitgesteld.aspx



Facts:
1. bidders are apple, google, intel, ericsson; RIMM (more than possible) and others to come (delay auction because of the significant intrest) as individuals or consortiums

2. RIMM needs to win the bid to survive; google to avoid court misery, and the rest to improve their power over the mobile device market

3. opening bid google: 900 million dollar

Now:
share value = 0 when the bid ends at 2,6 billion dollar
when the bid is 3,1 billion dollar: the price per common share will be 1dollar
==> 2,600,000,000 + 500,000,000 (number of O/S) = 3,100,000,000

patents are worth 15 billion dollars
the market expects the bid price to be several billion dollars

IMO common share value will therefore exceed 1dollar/common share