Nortel nears breakup point

Having stared into the abyss for some months, Nortel Networks is thought to be readying itself for the final breakup act. Some observers believe asset sales will start to take place this week, triggered by reports from Canada and South Korea that Nortel has appointed Goldman Sachs to find a buyer for its 50 per cent stake in the joint venture LG-Nortel. Goldman's could value the sale of this unit as high as US$1 billion.

Nokia Siemens Networks (NSN) has made a formal bid for Nortel's wireless and VOIP technology division (known as its Carrier business unit) and is seen as the favourite to acquire this part of Nortel, while its Enterprise business could be sold within days, with US-based Avaya and Siemens Enterprise Communications of Germany being the top bidders. Nortel's optical assets could be sold by the end of June, with Alcatel-Lucent, Fujitsu and Huawei being the most likely bidders.

Nortel has also been successful in its application to the Canadian bankruptcy courts for another three months to complete its reorganisation plan.

For more on this story:
Financial Times and Cellular News

Related stories:
Nortel soldiers on with carrier VoIP
Nortel unlikely to return from bankruptcy, claim analysts
Nortel execs get $7.3 million in bonuses, employees get nada

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