Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: peggylynn who wrote (6700)	9/5/2000 11:22:37 PM
From: telecomguy	Respond to of 14638

The problem is Roth feels NT still needs to fully control the component side of optics. The component business is not fully mature yet and much of mfg process is very laborious and at same time high-tech. NT has some competitive advantage in the actual component side which apparently gives them an advantage. We have to remember that NT dominates the optics market and they have the most experience out of all the companies in how to mfg optics systems AND components. Remember how NT had to help Corning design some optics components to ensure they were appropriate for NT's optics system? It's not so obvious that NT should spin it off. Sure valuation will be increased but at the price of loss of control and loss of potential competitive edge. Therefore NT may only spin off 20% to 40% off and retain mgmt control.