Nortel plots the sale of business units

Nortel Networks is considering selling off some of its major businesses rather than continue trying to restructure under bankruptcy protection, according to a report in The Wall Street Journal.

The Canadian equipment-maker, which filed for bankruptcy in mid-January and has until May to restructure, is said to be in talks with some of its competitors to sell its wireless network business and its enterprise communications business.

The two units clocked $6.7 billion in sales last year.

Nortel declined to comment. The company has held talks with Nokia Siemens Networks over the possible sale of its wireless business. Avaya and Siemens Enterprise Communications, a joint venture of Siemens and Gores Group, are said to be interested in the company's enterprise unit.

Nortel's board is expected to meet next week to discuss the company's plans to emerge from bankruptcy.

Nortel posted a $2.14 billion loss in the fourth quarter and a $5.8 billion loss for all of 2008. Its revenue declined 15% year-over-year in the fourth quarter, down to $2.72 billion.

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