Nortel Networks is considering selling 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 telecommunications 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-equipment business and its enterprise telecom business.
Nortel declined to comment. The company is said to be talking to rivals such as Nokia Siemens Networks, to sell 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 percent year-over-year in the fourth quarter, down to $2.72 billion.
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