UPDATE 1-Nortel says will delay GSM asset auction

* Postpones GSM wireless auction to Nov. 20

* Says decision taken after talks with interested parties

TORONTO Oct 28 (Reuters) - Bankrupt telecom equipment maker Nortel Networks Corp (NRTLQ.PK) has delayed the planned auction of its GSM wireless business by 11 days, it said on Wednesday.

Nortel had originally planned to sell the unit -- one of the company's few remaining assets -- on Nov. 9, but said in a statement that, "after discussions with interested parties," it would be better to schedule it for Nov. 20. Qualified bidders will have to submit offers by Nov. 16.

Nortel had previously said it planned to sell the GSM unit in an open auction. The deal will include related patents.

The Toronto-based company, once North America's biggest maker of telephone equipment, filed for bankruptcy protection in January, blaming the economic crisis for derailing its turnaround efforts.

It later decided it could generate more value for creditors by selling off its operations in pieces rather than trying to restructure itself into a viable business. (Reporting by Wojtek Dabrowski; editing by Rob Wilson)