Global Dispatches

Regulators Review Oracle-Sun Deal

BRUSSELS -- The European Commission is looking into Oracle Corp.'s proposed $7.4 billion acquisition of Sun Microsystems Inc. and expects to release its first opinion on the buyout on Sept. 3.

The European Commission was officially notified of the deal on July 30 and has 25 working days to decide whether it needs more time for an in-depth investigation.

Oracle announced in April that it planned to acquire Sun for $9.50 per share. The deal would reshape Oracle as a hardware and software vendor that can compete more fully with IBM and Hewlett-Packard Co.

The U.S. Department of Justice is also reviewing the planned deal and has extended its review once already.

— Mikael Ricknäs, IDG News Service

Ericsson Wins Nortel Auction

STOCKHOLM -- LM Ericsson Telephone Co. late last month won the bidding war for the wireless assets of Nortel Networks Corp., agreeing to pay $1.13 billion (U.S.) for the financially beleaguered company's CDMA business and LTE Access technology. Toronto-based Nortel has operated under bankruptcy protection since January.

The deal, subject to court approval, would expand Ericsson's foothold in North America, adding large operator customers like Verizon Communications Inc. and Sprint Nextel Corp.

Ericsson said it will offer jobs to at least 2,500 Nortel employees when the deal closes.

— Marc Ferranti, IDG News Service

Briefly Noted

The U.K. Ministry of Defense has awarded IBM a five-year, £23 million ($37.9 million U.S.) contract to manage the Royal Air Force's air surveillance command-and-control system. The deal calls for IBM to work with the ministry to manage an IBM-built system that identifies and monitors the movements of aircraft in flight over the U.K.

— Siobhan Chapman, Computerworld U.K.

Copyright © 2009 IDG Communications, Inc.

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