Nortel Networks confirmed it is shopping for a buyer for its majority stake in LG-Nortel, its joint venture with LG Electronics. The confirmation came after a report in the Financial Times last month that the bankrupt company was looking for a way out of the joint venture, and had hired Goldman Sachs to find a buyer for its stake. At the time, both Goldman and Nortel declined to comment.
"LG-Nortel is a successful business with an accomplished leadership team, a culture of innovation, a dedicated employee base and a drive to succeed," Nortel CEO Mike Zafirovski said in a statement. "As we work to evaluate the ultimate path forward for all of our businesses, this decision will allow LG-Nortel to embark on the next phase of its journey and realize its full potential."
LG said in a statement emailed to Bloomberg News that it had not made a decision regarding its continued participation in the joint venture. LG-Nortel was formed in 2005 and had revenues last year of around $1 billion.
In other news related to Nortel's restructuring, the company received court approval in France to sell its French research and development unit, despite objections from the local management and employees.
- see this release
- see this Bloomberg News article
- see this Bloomberg News article on the French unit
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