Globe says Nortel cost-cutting a growth killer
Nortel Networks Corp NT
Shares issued 3,177,057,492 2001-08-27 close $10.93
Tuesday Aug 28 2001 In the News
The Globe and Mail reports in its Tuesday, Aug. 28, edition that Nortel confirmed Monday it is selling some of its Internet access assets -- the "network aggregation" operations -- to a California-based firm, Zhone Technologies, for an undisclosed sum. The Globe's Vox column says Nortel is still trying to sell the rest of its Internet access business, including the high-speed DSL operations. There are rumours Nortel is close to a deal to sell its Clarify "relationship management" software division for $400-million (U.S.), which would be 80 per cent less than what it paid for those assets in October, 1999. One rumour says Nortel may sell some or all of the assets of Bay Networks, the $9-billion (U.S.) acquisition that put Nortel on the networking equipment map in 1998. Even if only half of the sell-off rumours are true, The Globe wonders what will be left once Nortel sells all the things it has to sell to get its costs in order. The Globe says some or all of those assets were supposed to help fuel the company's future growth, which begs the question, where will that growth come now?
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