Home
News
In Focus
Business
Metro
Nation
World
Sports
Feature
Opinion
View more »Opinion Columns
Wan LixinOpinion deputy editor of Shanghai Daily
Restaurants get off to a quick start thanks to game-changing policies
High service charges on event ticket refunds call for further regulation
Sunday
- Subscribe
Related News
Nortel seeks to sell in pieces
By Rob Gillies |
June 22, 2009, Monday
|
Print Edition
Print Edition
NORTEL Networks Corp, once a technology giant, has decided to sell itself off in pieces rather than attempt to emerge from bankruptcy as a restructured company.
Nokia Siemens Networks agreed to buy some wireless operations of Canada's Nortel Networks in a US$650 million deal as the more than century-old Nortel announced it was looking for buyers for the rest of its assets.
The Finnish-German joint venture said last Saturday that it had agreed to buy the CDMA and LTE wireless technology assets of Nortel, a former telecommunications equipment powerhouse that sought bankruptcy protection in January and now plans to liquidate its business.
The deal is subject to court approval under an auction process in which other bidders could still make higher offers.
Nokia Siemens is looking to strengthen its position in North American markets.
Nortel, on the other hand, is winding down a company with a 127-year history in Canada and syas it is in advanced talks to sell the rest of its operations.
Nortel CEO Mike Zafirovski had hoped to revamp and preserve Nortel since seeking bankruptcy protection in Canada and the United States.
"This is not the path which we worked so hard to get to," Zafirovski said.
"We're in advanced discussions with anywhere from three to seven companies for each one of the assets. If we're successful in getting the right value and the right integration planning and so on, then Nortel as an entity which we know will no longer be here in the future," Zafirovshi said.
He said the enterprise business, the optical Metro Internet business and the carrier voice over IP and application business as well as part of the wireless business are among the assets still up for sale.
Nortel also said it will ask to have its shares delisted from the Toronto Stock Exchange.
Nortel employs more than 25,000 people globally. During the 1990s telecom and Internet boom, Nortel had more than 95,000 employees. At one point in 2000 it accounted for one-third of the market value on the entire Toronto bourse.
After the dot-com bust in the early part of this decade, Nortel had problems of its own - an accounting crisis that sparked shareholder lawsuits, regulatory investigations and the firing of key executives, including CEO Frank Dunn.
Zafirovski tried to transform the firm but he said the economic crisis changed the outlook dramatically.
Nokia Siemens Networks agreed to buy some wireless operations of Canada's Nortel Networks in a US$650 million deal as the more than century-old Nortel announced it was looking for buyers for the rest of its assets.
The Finnish-German joint venture said last Saturday that it had agreed to buy the CDMA and LTE wireless technology assets of Nortel, a former telecommunications equipment powerhouse that sought bankruptcy protection in January and now plans to liquidate its business.
The deal is subject to court approval under an auction process in which other bidders could still make higher offers.
Nokia Siemens is looking to strengthen its position in North American markets.
Nortel, on the other hand, is winding down a company with a 127-year history in Canada and syas it is in advanced talks to sell the rest of its operations.
Nortel CEO Mike Zafirovski had hoped to revamp and preserve Nortel since seeking bankruptcy protection in Canada and the United States.
"This is not the path which we worked so hard to get to," Zafirovski said.
"We're in advanced discussions with anywhere from three to seven companies for each one of the assets. If we're successful in getting the right value and the right integration planning and so on, then Nortel as an entity which we know will no longer be here in the future," Zafirovshi said.
He said the enterprise business, the optical Metro Internet business and the carrier voice over IP and application business as well as part of the wireless business are among the assets still up for sale.
Nortel also said it will ask to have its shares delisted from the Toronto Stock Exchange.
Nortel employs more than 25,000 people globally. During the 1990s telecom and Internet boom, Nortel had more than 95,000 employees. At one point in 2000 it accounted for one-third of the market value on the entire Toronto bourse.
After the dot-com bust in the early part of this decade, Nortel had problems of its own - an accounting crisis that sparked shareholder lawsuits, regulatory investigations and the firing of key executives, including CEO Frank Dunn.
Zafirovski tried to transform the firm but he said the economic crisis changed the outlook dramatically.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
