Toronto-based Nortel Networks, Telecom equipment maker, which is under bankruptcy protection, has announced that it would liquidate itself by accepting a $650 million bid for the most lucrative part of its carrier networks division from Nokia Siemens, a joint venture of Nokia and Siemens.

The recent economic crisis forced Nortel Networks to ask for bankruptcy protection in January.

Earlier, an unsolicited offer was made by Nokia Siemens for parts of Nortel's carrier network group.   

Nokia Siemens said the deal would allow the company to make its presence felt in North America.

Nortel is providing employment to about 30,000 persons.

The deal includes Nortel's LTE assets and CDMA business, which has lost the battle for global dominance. Nortel covers approximately 30 percent share of the global CDMA market.

When contacted, Simon Beresford-Wylie, NSN Chief Executive, said, "This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense."

According to Nokia Siemens, the deal is subject to approval by both a U.S. bankruptcy court and the Ontario Superior Court of Justice.

Now only a few global players are left in the market. Prominent among them are Ericsson, Huawei, Nokia Siemens and Alcatel-Lucent.
In late trading, Nortel shares soared more than 3 percent to 17 cents.