Nortel strikes deal to sell business unit to Avaya

Jul 20, 2009
Striking employees of Nortel France, a subsidiary of the Canadian telecommunications firm Nortel, gather in front of the entrance of the factory during a general assembly in Chateaufort, outside Paris. Nortel said Monday it reached a deal to sell its enterprise solutions business to US-based Avaya for 475 million dollars pending approval of a bankruptcy court.

Canadian telecom equipment maker Nortel said Monday it reached a deal to sell its enterprise solutions business to US-based Avaya for 475 million dollars pending approval of a bankruptcy court.

The deal, to be submitted to a US judge overseeing the restructuring of , includes the North American, Caribbean and Latin America and Asia operations and a portion of the Europe, Middle East and Africa operations, Nortel said.

"We continue to be fully focused on running our operations and continuing to serve our customers while actively engaged in the sale of our businesses," said Nortel president and chief executive Mike Zafirovski.

"We have determined that the sale of our businesses maximizes value while preserving innovation platforms, customer relationships and to the greatest extent possible."

Once Canada's largest company, Nortel has been struggling since the dot.com collapse. It filed for bankruptcy protection in both the United States and Canada in January as it faced some 107 million dollars in interest on its debt.

The company lost 3.4 billion US dollars in the third quarter of 2008 and saw revenues fall 14 percent.

Last year, Nortel said it was slashing 2,100 jobs mostly in North America and would transfer another 1,000 jobs to lower-cost countries, following deep losses.

Nortel, which did business in 150 countries and had about 26,000 employees around the world in February, traces its history back to 1882 as the mechanical department of Bell Telephone Canada.

In June, Notel agreed to sell most of its wireless business to for 650 million dollars.

(c) 2009 AFP

Explore further: Apple intercepts Microsoft's Surface tablet NFL play

add to favorites email to friend print save as pdf

Related Stories

Nortel to sell itself off in pieces

Jun 20, 2009

(AP) -- Nortel Networks, once a technology giant, has decided to sell itself off in pieces rather than attempt to emerge from bankruptcy as a restructured company.

London 2012 replaces sponsor Nortel with Cisco

Jul 10, 2009

(AP) -- London Olympic officials on Friday replaced bankrupt Canadian technology sponsor Nortel Networks with Cisco for the 2012 Games, a move that will cost organizers $19.4 million in revenue.

Eyes on Huawei-Nortel broadband deal

Feb 02, 2006

Nortel's decision to tie up with China's Huawei Technologies to develop broadband access is seen as a good deal for the Canadian telecommunications group. Yet some industry analysts are questioning whether the same could ...

Recommended for you

Line says no IPO this year

6 hours ago

The Japan-based operator of popular mobile messaging app Line said Monday it has decided not to go ahead with an initial public offering in Japan or overseas this year.

Alibaba makes Wall Street debut

Sep 19, 2014

Alibaba made its long-awaited Wall Street debut Friday on the heels of a record stock offering that opens the door to global expansion for the Chinese online retail giant.

User comments : 1

Adjust slider to filter visible comments by rank

Display comments: newest first

COCO
not rated yet Jul 21, 2009
RIM remains in the hunt - would be a shame to loose this icon to the US where insipid management -like Nortel's recent clowns in the C suites have crippled this former giant.