NT-t...in the news:
Globe says Nortel Networks a market darling gone bad
Tue 14 May 2002
The Globe and Mail reports in its Tuesday, May 14, edition that Nortel
Networks fell to its lowest point in almost a decade Monday, after the firm
told regulators it may raise up to $2.5-billion (U.S.) through the sale of
securities over the next 25 months. The Globe's Simon Tuck writes the
filings will allow Nortel to issue common and preferred shares,
subordinated and senior unsecured debt, warrants to purchase equity or debt
securities, or equity units at any time during that period. Nortel says the
move provides it with greater financial flexibility, but analysts say it
signals the company does not expect its weakened financial picture to
improve any time soon. Last month chief executive officer Frank Dunn said
he was satisfied with Nortel's cash position. However, after Nortel's
announcement Monday, investors did not seem as confident. Nortel shares
fell as low as $3.56 (Canadian) during intraday trading, before ending the
day down 21 Canadian cents or 5 per cent at $4.03 (Canadian) on the Toronto
Stock Exchange -- their lowest closing price since Oct. 4, 1993. The Globe
says most analysts say the filings mean Nortel does not expect its business
to pick up any time soon. |
