Sony Ericsson, Alcatel-Lucent and two private-equity firms have reportedly made the shortlist to acquire Nortel’s stake in LG-Nortel, the South Korean mobile equipment vendor. According to a Reuters report, which cites South Korea’s eDaily, banking sources suggest that an initial list of eight candidates has now been reduced to four with JP Morgan’s One Equity Partners and Korean investment firm SkyLake Incuvest joining industry players Sony Ericsson and Alcatel Lucent on the final shortlist. However, Goldman Sachs, which is advising on the deal, declined to comment, and a later Reuters report carried comments from a Sony Ericsson VP claiming he had no knowledge of the development. 

Canada’s Nortel, which filed for bankruptcy protection in January, announced in May that it was looking to sell off its majority stake (50 percent + 1 share) in LG-Nortel, its South Korean joint venture with LG Electronics. Nortel noted at the time that “LG-Nortel is a profitable, standalone business with a strong balance sheet, and has not filed for creditor protection.” According to Reuters, LG Electronics today reaffirmed its commitment to maintaining its strategic investor status in LG-Nortel. Earlier reports have valued the joint-venture at close to US$1 billion.