Add to del.icio.us     Digg this

Apr. 7, 2009

According to a report from Bloomberg News, late yesterday, a Nortel executive has confirmed that the company will seriously consider auctioning off most of its business segments as the infrastructure manufacturer attempts to emerge from bankruptcy.

Bruce Gustafson, v.p. of strategic marketing for the wireless carrier networks unit, said that Nortel is “obligated” to extract the most value from its assets during the company’s reorganization process.

He was quoted as saying “we will go through the process of having those discussions.”

Nortel spokesperson Mohammed Nakhooda said the company would not comment on market rumors and speculation, and suggested that Gustafson’s quotes may have been taken out of context.

Nortel lost nearly $7 billion over the past two years as the global economic crisis ate into revenue and an uptick in competition had a large impact on its sales.

The company posted a net loss of $2.13 billion in the quarter before it filed for bankruptcy protection.

In March, anonymous sources leaked information that Nortel was in talks to auction off its businesses, suggesting the company would not emerge from bankruptcy as planned.

Nortel is largely expected to announce a reorganization strategy in the coming weeks.

Add to del.icio.us     Digg this

    This article was featured on Business 5.0 and on Tech Blog.

Source: Bloomberg News.