Nortel Networks might be divided for sale

Individual business units of Nortel Networks Corp., the Canadian telecommunications gear maker under Chapter 11 bankruptcy protection, are available for sale, the Financial Times reports.

Comments Nortel exec Bruce Gustafson made at a trade show this week gave credence to speculation that the company could be broken up rather than remain intact, the report said.

Gustafson, vice president of strategic marketing for Nortel’s networks unit, which builds networks for phone and cable companies and accounted for half of 2008 revenue for the company, would not confirm reports that the company was accepting bids for its corporate networking business but, according to Bloomberg News, conceded that it would entertain such discussions.

Unified communications and IP telephony provider Avaya Inc. and Siemens Enterprise Communications Ltd. reportedly are rumored to be interested in Nortel’s enterprise business unit.

Israel-based Radware Ltd. bought Nortel’s Layer 4-7 application delivery business for the bargain price of $18 million.

Nortel Government Solutions Inc., a unit of Nortel Networks and a recent winner of a slot on the General Services Administration Alliant contract, was not part of the January bankruptcy proceedings.

About the Author

Sami Lais is a special contributor to Washington Technology.

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