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

To: Harold S. who wrote (13762)	3/16/2004 5:32:05 AM
From: elmatador	Respond to of 14638

Nortel puts its finance chiefs on home leave By Scott Morrison in San Francisco Published: March 15 2004 16:41 \| Last Updated: March 15 2004 16:41 Nortel Networks placed its chief financial officer and controller on paid leave on Monday as part of an accounting probe. The news sent shares in the Canadian networking equipment maker down 18.5 per cent on Monday. The company said the action was necessary while its audit committee completed "an independent review" of the circumstances that led to the company's decision to restate results from 2000 through to the first half of 2003. The announcement unsettled investors and analysts, who said it was not clear why the officials were being put on leave. "It makes us nervous because it raises questions that they aren't giving us the answers to: Were the two officials placed on leave due to concerns about their integrity or their incompetence?" asked Michael Urlocker, analyst at UBS. Nortel's shares were down $1.19, or 18.5 per cent, at $5.24 by the close of trading in New York on Monday. William Kerr was appointed interim chief financial officer while Douglas Beatty remained on leave. MaryAnne Pahapill was named interim controller to replace Michael Gollogly, the company said. A Nortel official would not rule out further senior management changes relating to the ongoing audit. The official would not say why the two were being placed on leave now rather than when the restatements were first revealed. Nor was the official able to estimate when the internal audit would be completed. Monday's announcement was the latest bad news from the troubled Canadian group. Nortel's shares fell 7 per cent last Thursday after it said it would probably restate results for the second time in six months. It also warned it would need to delay filing documents with US securities regulators. Nortel last October said it would restate earnings from 2000 to the first half of 2003, mainly because it took larger than needed liability provisions during a time it was busy slashing about two-thirds of its staff amid the technology downturn. Nortel was among the hardest hit of the telecoms equipment makers when the technology bubble burst more than three years ago. After struggling through three lean years, the company appears to have regained its footing in recent months. Analysts said the latest accounting issues were not likely to affect the company's performance going forward. news.ft.com

To: Harold S. who wrote (13762)	3/16/2004 8:39:59 AM
From: John J H Kim	Respond to of 14638

Nortel has been saying that there would be restatements since October. The two executives being put on leave without much explanation is what got the market's panties twisted. The market is fearing the worst, and have priced (most of) it in.