REFILE-DEALTALK-RIM's Balsillie common antagonist for Nortel,NHL

(Refiles with correct ticker symbol for Nortel)

By Frank McGurty

TORONTO, July 23 (Reuters) - The National Hockey League and bankrupt Nortel Networks (NRTLQ.PK) share a dubious distinction: both have spurned offers from one of Canada's richest men to pay a premium for assets each seems desperate to unload.

The common thread is Jim Balsillie, the deep-pocketed co-CEO of Research In Motion (RIM.TO), the company that makes the ubiquitous BlackBerry smartphone.

Even though the NHL and Nortel are highly motivated sellers, neither wants to do business with the Canadian technology magnate, both times because he has refused to play by their rules.

Balsillie, perhaps Canada's best-known business leader, has reacted to each in similar fashion, sounding a patriotic chord that he hopes will help turn the tide in favor of his proposals -- something analysts say is unlikely.

"He clearly does not want to play by the rules, or he wants to remake the rules in every situation," said Robert Boland, a professor of sports management at New York University. "He gets an extra goal, or an extra pass, when everyone else goes to the penalty box."

Last month the NHL went to court to block Balsillie from consummating his $212.5 million offer to buy the Phoenix Coyotes, a financial sinkhole that has consistently lost money. Known for his passion for Canada's favorite sport, Balsillie wants to relocate the team to southern Ontario, not far from RIM's corporate headquarters in Waterloo.

But the league, clinging to its Sun Belt expansion strategy, opposes the plan and is seeking bids from groups willing to keep the team in Arizona. At least two such offers are expected to be in place by a Friday deadline, but neither will come close to the price Balsillie is willing to pay.

Likewise, Nortel Networks has refused to consider a $1.1 billion offer from Balsillie's RIM for its wireless technology business even as the fallen tech icon stages a fire sale of its assets. On Wednesday it said the BlackBerry maker refused to comply with court-approved procedures.

An auction for the business is scheduled for Friday, with at least three formal bids on the table. The highest, from Sweden's Ericsson (ERICb.ST), is reported to be for $730 million. RIM said it wants to pay some 50 percent more, yet Nortel has turned its back.

A spokesman for Balsillie declined comment, and a spokeswoman for RIM could not be immediately reached.

To be sure, the parallels are less than perfect. In the case of the Coyotes, the team's owner, Jerry Moyes, put the team in bankruptcy, with Balsillie's offer in his back pocket, hoping to maximize the return on his soured investment.

But the league cried foul, and the bankruptcy judge allowed a process that must first determine if an acceptable bid to keep the team in the Arizona desert would emerge.

That very well may leave Balsillie out in the cold and thwart his long-held dream of NHL ownership.

While it would seem unlikely to influence the Arizona court, Balsillie has depicted his personal quest as a crusade to "bring home" the team, which moved from Winnipeg in 1996. Balsillie has sponsored rallies and launched a website (www.makeitseven.ca) to build support for his cause.

In the case of Nortel, Balsillie has acted in his capacity as co-leader of Canada's most dynamic technology company.

RIM said it wanted to offer $1.1 billion for Nortel's wireless assets, but the bankrupt telecommunications equipment maker would not accept a bid because Balsillie and company, both sides agree, would not play by the rules.

Nortel said it blocked RIM from the auction because it refused to comply with confidentiality requirements and a provision that it obtain Nortel's consent to bid for any other of that company's assets.

RIM's reaction: wave the flag. In a sharply worded statement earlier this week, Balsillie called on Ottawa to step into the fray and allow "a Canadian ownership solution" that would keep "key wireless technologies in Canada".

The government this spring rejected a rescue plan for Nortel, once North America's largest maker of telecom gear, along the lines of its auto industry rescue package.

Analysts say it's unlikely that RIM will stop the Nortel auction from awarding the assets to another party, raising questions over Balsillie's approach. [nN22235478]

"Maybe he's one of those people who feels he can take a run on values in certain places even if he doesn't complete deals," said Boland. "He's a little bit of a hockey player that plays with a visor -- you can't really see his eyes." (Additional reporting by Pav Jordan in Toronto and Ben Klayman in Chicago; editing by Janet Guttsman)