Ericsson buys Nortel stake for $242million

Ericsson says that the deal has been struck to increase access to the Korean telecoms equipment market and that it would boost its earnings within a year of closing. Nortel filed for bankruptcy protection in January. A statement from Ericsson said: "This acquisition will significantly expand Ericsson's footprint in the Korean market and provide Ericsson with a well established sales channel and strong R&D capability in the country." LG Electronics reiterated that it remained committed to maintaining its strategic investor status in LG-Nortel, which will be renamed LG-Ericsson.