Reports indicate that Nortel is in talks with various acquisition targets like 3Com, Foundry Networks, Tellabs and Sonus Networks. Nortel is looking to expand its reach in key markets like the enterprise, VoIP and IPTV.

"We are doing lots of analysis internally on how to grow the company organically and we started discussions recently with companies that we believe can be adding to our growth trajectory," Nortel CEO Mike Zafirovski said in an interview. "We're confident that we'll be able to successfully integrate other activities if the pricing is appropriate," he said.

Nortel reported its Q2 earnings earlier this week and posted a loss for the quarter.

For more on Nortel's plans:
- read this article from PC World