UPDATE 1-Nortel, Google in $900 mln patent deal

(In U.S. dollars unless noted)

TORONTO, April 4 (Reuters) – Bankrupt Nortel Networks
(NRTLQ.PK: Quote, Profile, Research) has entered into a preliminary agreement to sell its
patent portfolio to Google (GOOG.O: Quote, Profile, Research) for $900 million, the
company said on Monday.

The planned sale includes around 6,000 patents and patent
applications covering wireless, wireless 4G, data networking,
optical, voice, Internet, service provision and semiconductors,
Nortel said in a statement.

The so-called stalking horse bid sets a minimum price for
other bidders, which can use that offer and its terms as a
starting point for their own proposals.

A stalking horse bidder typically receives a break-up fee
if its bid does not go through, and it can use that fee in
subsequent auction rounds.
(Reporting by Alastair Sharp; editing by Pav Jordan and Rob
Wilson)

UPDATE 1-Nortel, Google in $900 mln patent deal