The main reason the street is hammering the stock is because of the implication that NT is not fully disclosing the details.
03/15/2004
Dow Jones News Services
(Copyright © 2004 Dow Jones & Company, Inc.)
By Ben Dummett
Of DOW JONES NEWSWIRES
TORONTO (Dow Jones)--The Ontario Securites Commission wants Nortel Networks Corp. (NT) to provide it with additional information about the likely accounting revisions the network-equipment vendor plans to make and to speedily complete a review of its financial statements, a commission spokeswoman said.
However, commission spokeswoman Wendy Dey declined to comment on whether the securities regulator has launched a formal investigation into Nortel.
As reported, Brampton, Ont.-based Nortel sent its stock reeling Monday, after announcing it had placed its chief financial offer and controller on paid leave, pending the completion of the independent review of Nortel's financial statements. On Thursday, Nortel said it would likely restate results for 2003 and for one or more earlier periods as a result of the audit committee's ongoing review of certain accruals and provisions recorded in past financial statements.
The securities commission had contacted Nortel on Thursday and was in touch with the company again early Monday, at which time commission was told of the executive suspensions, Dey said.
"We've asked for further information regarding the likely revisions that they identify," Dey said. The commission also wants Nortel to complete the review of its financial statements and subsequently inform the commission of the issues involved "in an expeditious manner," Dey said.
In New York, Nortel is down 14.6% or $0.95 at $5.48 on volume of 185 million shares.
Company Web Site: nortelnetworks.com |
