Sticking your head into the mouth of a lion is usually not recommended unless you've conjured a way to make it appear that your life is really in danger...like putting easily-removed false teeth into the feline or other such tricks.

Why else would Avaya--a very smart company--ask Canada's minority Conservative government to have its $915 million purchase of Nortel reviewed, as reported by TMCnet, unless it is very confident of the outcome?

Here is the wording from yesterday's announcement:

OTTAWA, Ontario, September 24, 2009 -- Today, the Honourable Tony Clement, Minister of Industry, issued the following statement regarding the acquisition of Nortel Networks Corporation's Enterprise Solutions Division by Avaya Inc.:

"Avaya filed an application for review under the Investment Canada Act (ICA) of its proposed acquisition of Nortel's Enterprise Solutions Division...."

--

Here's another strange dimension to this deal: no release of the enterprise division's book value compared with the $149 million for the wireless units. Why hasn't this figure made the light of day? Unless someone can enlighten me--given the sales declines experienced by this sector--does it make sense for the enterprise division to be worth more bookwise than wireless?

What is being counted: excess inventory that no one wants to buy, especially now? The value of the precious metals in the unwanted boxes that would have to be recycled? When the Province of Ontario launched its aggressive e-waste program did it realize that some of that junk would be originating from its back yard?

At least Ericsson is taking advantage of Nortel's technology in a leading edge field and is hiring the best and brightest to work for a company that has long had an R&D presence in Canada. In contrast Avaya is buying a division in a 'mature' i.e. slow growth area that is undergoing a technology shift i.e. TDM to IP that favors its pure-play IP rivals i.e. Cisco, ShoreTel, a unit whose value appears to mainly lie in the customer base and distribution channels. That spells for the Nortel enterprise unit's Canadian workers just two words: Employment Insurance.

Unless there has been backroom assurances and promises that haven't yet seen the light of day, seeking the review is a gutsy move by Avaya to quell the negative press over rumored layoffs--and the reports of Nortel customers going to competitors--aimed at stanching what the cynical would regard the rapidly bleeding value of its costly purchase.

If the Canadian government can close its jaws quickly and Avaya emerges unscathed, the enterprise sale (and Avaya) would have been spared a political haranguing on the job losses and the pensions issue that would make the hassle over the Ericsson purchase of Nortel's wireless assets like a friendly disagreement. Parliament is back in session and the Opposition Liberals under its leader Michael Ignatieff is beginning to think it has an issue with Nortel that it can beat the Conservatives with.

If there is one thing that the Conservatives are good at--which is the secret of their nearly four years of minority governance--and that is behind the scenes as well as up front managing the political show.