A planned alliance between communications equipment maker Nortel Networks and email pager maker
Published:
24 January 2000 y., Monday
The two Canadian-based companies said on Tuesday they had entered a research and marketing deal that would see Nortel invest US$25 million into RIM. Not only do they intend to cooperate in the creation of future wireless Internet technologies, but they will sell RIM_s products globally.
Nortel makes networking and other products designed to push more video, voice, and data
down pipelines and sells them to phone companies trying to cope with exploding Internet
usage.
Analysts said the deal gives Nortel, headquartered in Brampton, Ontario, a chance to get an inside look at the burgeoning wireless technology industry. RIM's palm-sized products provide email and Internet access.
The $25 million is tiny for multibillion-dollar Nortel, said John Kim, a portfolio manager at Transamerica GrowSafe, but "it does give them a window on emerging new handheld technologies that are out there." Waterloo, Ontario-based RIM will benefit from its ability to piggy-back on Nortel_s sales links with phone companies around the globe. Nortel_s investment in RIM will be at prevailing market prices and is subject to regulatory approval. Investors reacted with approval for both RIM and Nortel. RIM (RIMM) shares climbed C$7.25 or 9.9 percent to C$80.25 on the Toronto Stock Exchange by early afternoon on Tuesday, edging closer to its 52-week high of C$92. In Toronto, Nortel (NT) rose C$2.45 to C$137.65. Last year investors and analysts lauded RIM_s products, sending the stock soaring from a 12-month low of C$10.40.
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Bank DnB NORD A/S increasing its holdings in its Lithuanian subsidiary to 99.84 percent through acquisition of shares from minority shareholders.
more »
AB Bank SNORAS will grant LTL 35 million for financing the small and medium businesses on the exclusive conditions.
more »
Rejecting survival plans from both General Motors and Chrysler, President Barack Obama warned the ailing US automakers they could be forced into bankruptcy if they don't find a way to slash their debt.
more »
Prevailing wisdom says when the going gets tough the weary go drinking. The demand for beer exceeds the demand for all other alcoholic beverages in USA.
more »
Things have been moving slowly for Swiss watchmakers in recent months. The global economic downturn has hit the country's third most important industry hard.
more »
The move came a day before the U.S. government was due to outline new steps to help GM and Chrysler as part of the federal bailout.
more »
With the European year of creativity and innovation in full swing, leading figures warn against cutting back on research and development in times of crisis.
more »
Wall Street has been looking for signs of a bullish comeback, and today's surprise news on the economic front revived a buying spree... started by Monday's 7% rally.
more »
With the economic crisis eating away at public finances, budget deficits in five countries are expected to exceed the 3% of gross domestic product allowed by the EU.
more »
China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis.
more »