Archive for June, 2006
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Monday, June 19th, 2006Do you think Nortel CEO Mike Zafirovski got much of a surprise this morning to read about the mega-deal between Nokia and Siemens? Many people had expected Nortel would have been involved in a merger/JV with Nokia or Siemens but, instead, Nortel has been left on the sidelines as a $19.9-billion, 60,000-employee entity called Nokia-Siemens [...]
Outlook for Nortel-LG Joint Venture
Saturday, June 17th, 2006Nortel held a conference call earlier this week to talk about its joint venture with LG, in which Nortel acquired a 50.1% stake for $145-million. The JV was created to give Nortel access to the South Korean market; to sell JV products from Nortel; and leverage the R&D resources of the two companies. According to [...]
Sagawa Upgrades Nortel
Friday, June 16th, 2006Sanford Bernstein analyst Paul Sagawa has upgraded Nortel to "market perform", citing the fact the shares trade at their break-up value. "Given this, we believe further downside is limited, with the price reflective of several negative events on the horizon, including the upcoming dilutive issuance of 628.7 million shares, Securities and Exchange Commission and Ontario [...]
Nortel $2B Refinancing Exercise
Friday, June 16th, 2006Nortel has unveiled off a proposed $2 billion offering of senior unsecured notes. The proceeds will be used to repay a $1.3-billion one-year credit facility and general corporate purposes. This includes $150-million that was recently paid out when some 7.4% notes recently matured.
GimmeCredit Down on NT Bonds
Thursday, June 15th, 2006GimmeCredit is far from excited about Nortel's long bonds even though they're yielding 8.3%. "Nortel has bonds maturing this month and although we think the company can repay or refinance these bonds as well as bank debt coming due in 2007, business growth that would dramatically improve credit quality is unlikely this year." GimmeCredit is [...]
Nortel Strategy to be Unveiled Soon
Wednesday, June 14th, 2006I had a chance to sit down with Nortel chief strategy officer George Riedel earlier today at the Canadian Telecom Summit. For investors and analysts looking for the company to articulate its strategic plan with more details about what markets it plans to focus on and how its R&D budget will reflect this direction, Riedel [...]
Nortel Bows Out of India
Tuesday, June 13th, 2006Nortel has decided not to bid on new equipment contracts with Bharat Sanchar Nigam Ltd., which plans a $4.8-billion expansion of its wireless networks in India. Nortel chief strategy offficer George Riedel told the Ottawa Citizen that Nortel bowed out "because economically it was not as attractive as it needed to be." (translation: the margins [...]
Nortel Makes Motley Fool List
Monday, June 12th, 2006Motley Fool has a story - "3 Stocks That Missed the Mark" - that includes Nortel following its disappointing first-quarter results. It includes this cutting paragraph:
"The company keeps spending around $50 million per quarter on fixing old accounting problems, and even the CFO doesn't appear too excited about his company's future prospects, pointing to "high-single-digit [...]
Nortel Unveils New SMB Products
Monday, June 12th, 2006Nortel's focus on the small and medium-size business market will see the launch of new products in August featuring wireless LAN, ethernet switching, security and converged voice and data technology. Nortel said the new portfolio wll give it an edge over rivals such as HP and 3Com because it features a single management interface SMBs [...]
Nortel Co-Sponsors Research Chair at UoW
Sunday, June 11th, 2006Nortel and the Sciences and Engineering Research Council of Canada have co-sponsored a new research chair at the University of Waterloo that will focus on development new wireless technology such as 3G and 4G broadband networks. Dr. Amir Khandani, a UoW professor in Electrical and Computer Engineering, has been appointed senior chair. He is [...]
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