« Nortel “Overweight” Confirmed | Main | Ex-Executives Get Packaged »
Should I Stay or Should I Go?
By Mark Evans | February 28, 2006
In light of Mike Z.'s contention that Nortel needs at least 20% share to be viable in each market in which its participates, National Bank Financial analyst Tom Astle has issued an intriguing research report looking at some of Nortel's major units to determine what should be turfed, what should be fixed, and what should be fixed through a partnership. The leading candidate to go, Astle contends, is Nortel's carrier data business where it has no router and less than 10% market share. He also suggests the company sell its small and medium size business unit, which could fetch a good price from multiple bidders. Among the leading candidates to "exit or partner" are Nortel's large enterprise data and GSM businesses, while UMTS operation falls into the "fix or partner" category. Astle's report can be found here (National Bank Financial asked for the report to be removed). Note: This post has been updated to correct some earlier mistakes/inaccuracies.
Topics: Analyst Coverage |