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Archive for July, 2006

Tough Times Ahead for Nortel

Investopedia has a blunt take on Nortel’s prospects: it’s going to be a tough road ahead. While Ben McClure, is director of McClure & Co., gives the company credit for dealing with its accounting woes and putting its financial books in order, he warns if investors believe “Nortel is about to shows signs of its [...]

Tough Times For Lucent

A strong signal the telecom equipment market is still a tough environment is Lucent Technologies’ warning that its fiscal third-quarter revenue will fail to meet expectations due to weak sales in the U.S. and China. Lucent said revenue will be $2.04-billion, compared with earlier forecasts of $2.34-billion. Alcatel also said well-respected Mike Quigley will not [...]

Will PEC Pay Off for Nortel?

Nortel announced yesterday it has won a contract extenstion from the U.S. Department of Homeland Security to provide services to the U.S. Citizen and Immigration Service. The deal was won by Nortel’s PEC Solutions division, which was acquired in April, 2005 for $443-million as a key part of ex-CEO Bill Owens’ focus on the federal [...]

Pension Fairness

The National Post has a story based on a survey of CEOs that suggests the pain of pension plan pullbacks must be shared among senior executives and their rank and file employees. Not surprisingly, the story cites Nortel’s plan to switch to a defined contribution plan from a defined benefits plan, and CEO Mike Zafirovski’s [...]

The CEO Challenge

So what does Nortel CEO MikeZafirovski do when he’s not working to save the company? If he still has the time, Mike Z. could be competing in the Ironman CEO Challenge, a company created by Ted Kennedy to provide CEOs with the ultimate racing experience. According to MSNBC, Kennedy’s firm offers CEOs VIP treatment: first-class [...]

Mike Z.’s Sweet Package

The National Post has a short but revealing story about Nortel CEO Mike Zafirovski’s financial package. On top of his $1.2-million annual salary and options, he gets $36,977 in an “auto benefit allowance”, $15,358 in club membership fees and use of the corporate jet. Sweet!

Mike Z. Takes a Pension Haircut…Kinda

In the wake of Nortel’s plan to reduce its annual costs by a cool $100-million a year by switching to a defined-contribution pension plan from a defined-benefits plan, CEO Mike Zafirovski has stepped up to the plate as well by volunteering to pare back his “special annual pension” by 29% to $355,000 a year instead [...]

Nortel Closes $2B Debt Offering

Nortel has closed its $2-billion senior notes offering with a three-tranche deal: $450 million of notes due 2016,S$550 million of notes due in 2013, and $1-billion of floating notes due in 2011. Nortel expects to use $1.3 billion to prepay a US$1.3 billion one-year credit facility that it did in February. The rest will be [...]

Nortel-Huawei? Don’t Count On It

Ever since Nokia and Siemens decided to combine their carrier networking equipment units, there has been no lack of speculation about Nortel doing a deal to keep up with the Joneses, including talk about a joint venture or merger involving Huawei. Truth be told, Huawei is attractive because it’s a fast-growing player with a low-cost [...]

Post-AGM “Deep Thoughts”

Nortel’s AGM in a nutshell: Mike Zafirovski was solid and came across as straightshooter intent on fixing Nortel before it makes a big move such as a merger or sale. Without a doubt, he’s a professional executive who is confident in his own abilities to manage and deliver “the message” to his constituents: employees, investors, [...]