Update: Nortel is working on removing its shares from stock exchanges

The largest telecom equipment maker Nortel Networks Corp. has just announced the company will actually now liquidate, after entering chapter 11 bankruptcy protection in January 2009.

Nortel confirmed Nokia Siemens would buy its most lucrative carrier-networks division, CDMA assets, and its wireless-research division for $650 million.

The deal is expected to close, pending regulatory approval (July 30 in Canada, July 28 in the United States), in Q3 2009.

Nortel CEO Mike Zafirovski told the WSJ on Friday, “This is not what we were planning,” but assured it was the right path for stakeholders.

Nokia CEO Simon Beresford-Wylie said in a statement, “This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense,”

Nortel currently holds about 30% of the total telecom CDMA equipment market in the world.

Under the deal, existing Nortel employees in the United States, Canada, Mexico, and China will keep their positions. Reports indicate Nokia could consolidate a Nortel research division where 400 jobs would be affected.

Nortel currently employees up to 30,000 people worldwide.

Nortel also confirmed the company is in advanced talks to sell other divisions.