Comments on: Is Nortel Ripe for a Takeover? http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/ All the News about Nortel Networks Thu, 09 Feb 2012 03:34:00 +0000 hourly 1 By: burdickrobert http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-21537 burdickrobert Sun, 19 Jul 2009 21:35:34 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-21537 There is another link under the category of personal finance but it has nothing to do with finance. If you have difficulties in making payment, you can click the link named <a href="http://www.wachoviabankviews.com/" rel="nofollow">wachoviabank.com</a>. You will have an expert helping you to fix your problems and you don’t have to go out of your home to get the service. What you need to do is to choose a button between the two “call us today” and “we’ll call you”. Don’t you think this service shows the attentiveness and consideration of the Wachovia? It’s really good in my opinion. There is another link under the category of personal finance but it has nothing to do with finance. If you have difficulties in making payment, you can click the link named wachoviabank.com. You will have an expert helping you to fix your problems and you don’t have to go out of your home to get the service. What you need to do is to choose a button between the two “call us today” and “we’ll call you”. Don’t you think this service shows the attentiveness and consideration of the Wachovia? It’s really good in my opinion.

]]> By: Ex-Nortel http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2485 Ex-Nortel Sun, 09 Mar 2008 21:42:05 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2485 At the present time, a buy out or merger of Nortel would be very difficult for any party. In terms of looking at a buy out, the Buyer would have to adjust Nortel's long term assets on the balance sheet, pay off bond holders, assume pension liabilities, assume liability for any future law suits, pay out some ugly parachute packages to Nortel's management, and deal with the fall out int he Canadian Press. Note that none of these points even deals with the central problem of fixing Nortel itself products, distribution, head count, etc.). Nortel has all of the cancers that a private equity firm runs from.<br><br>It would be even more difficult to find a potential merger partner stupid enough to take on Nortel a ta time when the company is collapsing right in front if its competitors eyes. Nortel is losing customers and key employees to its competitors, so it really has nothing valuable to offer. It does not cost Erriccson, Nokia, Cisco, & Huawei, anything to watch Nortel collapse and hemorhage customers and key employees. Why would they spend money to take over Nortel's financial and legal problems (for instance, Cisco has no pension liabilities) in a move that would dilutive to their stock? Nortel's competitors already know that Nortel is sales numbers are shrinking and that it has very attractive margins and a bloated head count. Why would any competitor take on Nortel's difficult problems, bloated structure poor management, and an ugly PR fight with the Canadian Government and press.<br><br>Nortel would literally have to be a zero dollar acquisition before it stopped smelling like a 30 day old dead fish. At the present time, a buy out or merger of Nortel would be very difficult for any party. In terms of looking at a buy out, the Buyer would have to adjust Nortel's long term assets on the balance sheet, pay off bond holders, assume pension liabilities, assume liability for any future law suits, pay out some ugly parachute packages to Nortel's management, and deal with the fall out int he Canadian Press. Note that none of these points even deals with the central problem of fixing Nortel itself products, distribution, head count, etc.). Nortel has all of the cancers that a private equity firm runs from.

It would be even more difficult to find a potential merger partner stupid enough to take on Nortel a ta time when the company is collapsing right in front if its competitors eyes. Nortel is losing customers and key employees to its competitors, so it really has nothing valuable to offer. It does not cost Erriccson, Nokia, Cisco, & Huawei, anything to watch Nortel collapse and hemorhage customers and key employees. Why would they spend money to take over Nortel's financial and legal problems (for instance, Cisco has no pension liabilities) in a move that would dilutive to their stock? Nortel's competitors already know that Nortel is sales numbers are shrinking and that it has very attractive margins and a bloated head count. Why would any competitor take on Nortel's difficult problems, bloated structure poor management, and an ugly PR fight with the Canadian Government and press.

Nortel would literally have to be a zero dollar acquisition before it stopped smelling like a 30 day old dead fish.

]]> By: Nortel watcher http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2486 Nortel watcher Sun, 09 Mar 2008 00:58:46 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2486 Protosphere: You have been right about Nortel for a long time now. I hope you have been shorting the stock all along. Protosphere: You have been right about Nortel for a long time now. I hope you have been shorting the stock all along.

]]> By: SexyBeast http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2487 SexyBeast Sat, 08 Mar 2008 19:33:53 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2487 The only way people leave nortel without a package is if they quit.<br>Some can afford to Quit.<br>Others cannot.<br>These are the facts. The only way people leave nortel without a package is if they quit.
Some can afford to Quit.
Others cannot.
These are the facts.

]]> By: Friend http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2490 Friend Thu, 06 Mar 2008 18:00:20 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2490 Yes, without benefits. My friend is one of those who left this broken and disjointed company. He could not stand working for managers, who sold purpose is to frustrate their employees into quiting. He kept saying to me that the problem is the frontline managers, the so called legacy folks,and that they are incompentent when it comes to managing the new VOIP tecnology. Seems to me that they are not being held accountable. I believe that if this company gets bought, they first thing that will happen is that these legacy folks will be let go. Yes, without benefits. My friend is one of those who left this broken and disjointed company. He could not stand working for managers, who sold purpose is to frustrate their employees into quiting. He kept saying to me that the problem is the frontline managers, the so called legacy folks,and that they are incompentent when it comes to managing the new VOIP tecnology. Seems to me that they are not being held accountable. I believe that if this company gets bought, they first thing that will happen is that these legacy folks will be let go.

]]> By: Apple http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2489 Apple Wed, 05 Mar 2008 19:48:40 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2489 Good points<br>just I noticed that Canada likes AirCanada story<br>Get rid off of shareholders, change ownership, restructure under BK laws and start again.<br>Canadian governments love that!<br>There is not much sense to pour more $$ into a broken ship taking on water! /losing money fast!/<br>How much NT lost in last few years?<br>They arranged $2 bill +2 Bill financing<br>They sold manuf. to Flex for $700 mill<br>They sold UMTSfor $300 mill<br>They sold HQ for around $100Mill<br>They sold assets and investments<br>They diluted stock 20%<br>WTF they are using money for? Bonuses and high salaries?<br>Golden Parachutes for anyone leaving?<br>Guess what. The last 12 months will be just ugly!<br>There is not enough Golden Parachutes for every one!<br>Some will jump out the plane without benefits.<br>The first are the best. Good points
just I noticed that Canada likes AirCanada story
Get rid off of shareholders, change ownership, restructure under BK laws and start again.
Canadian governments love that!
There is not much sense to pour more $$ into a broken ship taking on water! /losing money fast!/
How much NT lost in last few years?
They arranged $2 bill +2 Bill financing
They sold manuf. to Flex for $700 mill
They sold UMTSfor $300 mill
They sold HQ for around $100Mill
They sold assets and investments
They diluted stock 20%
WTF they are using money for? Bonuses and high salaries?
Golden Parachutes for anyone leaving?
Guess what. The last 12 months will be just ugly!
There is not enough Golden Parachutes for every one!
Some will jump out the plane without benefits.
The first are the best.

]]> By: Observer http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2488 Observer Wed, 05 Mar 2008 18:35:49 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2488 I smell possible government bailout of Nortel and more loan guarantees. With a slowing global economy, the Canadian government could keep it afloat with more bond sales. I smell possible government bailout of Nortel and more loan guarantees. With a slowing global economy, the Canadian government could keep it afloat with more bond sales.

]]> By: protosphere http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2491 protosphere Wed, 05 Mar 2008 17:32:14 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2491 Business buyouts are usually based on 2 to 3.5X earnings, not sales..... forget revenues/sales, they make no money... i.e. who pays money to lose money....<br><br>Since no earnings, no sale, simple as that.<br><br>Now what is left they divest is all they have left, what will they have left thereafter, and to who will they sell is all that remains as far as i can see? dire... Business buyouts are usually based on 2 to 3.5X earnings, not sales….. forget revenues/sales, they make no money… i.e. who pays money to lose money….

Since no earnings, no sale, simple as that.

Now what is left they divest is all they have left, what will they have left thereafter, and to who will they sell is all that remains as far as i can see? dire…

]]> By: Hostile Takeover http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2492 Hostile Takeover Wed, 05 Mar 2008 15:48:20 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2492 would need an aggressive takeover firm with a hostile bid. total debt is about 6 billion. annual revenue is 10 billion. they would be expected to pay a 20% premium. minimum bid would be 11 or 12 billion. <br><br>outstanding shares are fragmented across a lot of small investors and retirement funds. with the stock so low, nobody will sell unless they want a huge loss in their portfolio.<br><br>the shareholder lawsuit is being looked into again as the stock has gone down 75%. unless this is over nobody will take this liability. if the mutual funds start getting out then its a sign they are getting out.<br><br>if it is taken over then feel sorry for the employees as it will be a bloodbath. whoever survives has no guarantee as the employment meter with the new company will be reset to 0 i.e. no bail out package. would need an aggressive takeover firm with a hostile bid. total debt is about 6 billion. annual revenue is 10 billion. they would be expected to pay a 20% premium. minimum bid would be 11 or 12 billion.

outstanding shares are fragmented across a lot of small investors and retirement funds. with the stock so low, nobody will sell unless they want a huge loss in their portfolio.

the shareholder lawsuit is being looked into again as the stock has gone down 75%. unless this is over nobody will take this liability. if the mutual funds start getting out then its a sign they are getting out.

if it is taken over then feel sorry for the employees as it will be a bloodbath. whoever survives has no guarantee as the employment meter with the new company will be reset to 0 i.e. no bail out package.

]]> By: Novice Investor http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/comment-page-1/#comment-2493 Novice Investor Wed, 05 Mar 2008 01:05:06 +0000 http://www.allaboutnortel.com/2008/03/04/is-nortel-ripe-for-a-takeover/#comment-2493 From Nortel Investor Relations ..... Analyst Coverage .... or ....SUICIDE WATCH TEAM ....<br><br> <br>American Technology Research<br>Mark McKechnie<br>415-490-3920<br><br>Arete Research Services LLP<br>Richard Kramer<br>+44 (0) 20 7959 1300 <br><br>Argus Research Corp.<br>Jim Kelleher<br>212-425-7500<br><br>Banc of America Securities LLC<br>Tim Long<br>212-847-5506<br> <br>Bear, Stearns & Co.<br>Phil Cusick<br>212-272-9078<br> <br>BMO Nesbitt Burns<br>Paras Bhargava<br>416-359-6941<br> <br>Charter Equity Research<br>Edward Snyder<br>415-931-9955 <br><br>Credit Suisse<br>Paul Silverstein<br>212-325-5290 <br><br>CreditSights<br>Ping Zhao<br>212-340-3851<br> <br>Deutsche Bank North America<br>Brian T. Modoff<br>415-617-4237<br> <br>Dresdner Kleinwort Wasserstein<br>Per Lindberg<br>41-01-267-1666 <br><br>Genuity Capital Markets<br>David Hodgson<br>416-687-5342<br> <br>Goldman Sachs & Co.<br>Brantley Thompson<br>212-902-9823 <br><br>J.P. Morgan<br>Ehud A. Gelblum<br>212-622-6457 <br><br>Jefferies & Co.<br>George C. Notter<br>415-229-1522<br> <br>Kintisheff Research<br>Tsvetan Kintisheff<br>35-92-980-2044 <br><br>Lehman Brothers<br>Inder Singh<br>212-526-9085<br> <br>Merrill Lynch<br>Vivek Arya<br>212-449-2082 <br><br>Merriman Curhan Ford & Co.<br>Tim Savageaux<br>415-262-1383 <br><br>Morgan Stanley<br>Scott Coleman<br>212-761-6055<br> <br>Oppenheimer & Co. Inc.<br>Ittai Kidron<br>212-667-6292<br> <br>Pacific Crest Securities<br>Tim Daubenspeck<br>503-727-0634<br> <br>RBC Capital Markets (US)<br>Mark Sue<br>212-428-6491<br> <br>Robert W. Baird & Co., Inc.<br>Kenneth W. Muth<br>414-765-3773 <br><br>Sanford C. Bernstein & Co., LLC<br>Paul Sagawa<br>212-407-5825<br> <br>Scotia Capital<br>Gus Papageorgiou<br>416-863-7552<br> <br>Seb Enskilda<br>Mats Nystrom<br>46-8-522-29550 <br><br>TD Newcrest<br>Chris Umiastowski<br>416-983-3599 <br><br>Thomas Weisel Partners<br>Hasan Imam<br>212-271-3698 <br><br>UBS (US)<br>Nikos Theodosopoulos<br>212-713-3286 From Nortel Investor Relations ….. Analyst Coverage …. or ….SUICIDE WATCH TEAM ….

American Technology Research
Mark McKechnie
415-490-3920

Arete Research Services LLP
Richard Kramer
+44 (0) 20 7959 1300

Argus Research Corp.
Jim Kelleher
212-425-7500

Banc of America Securities LLC
Tim Long
212-847-5506

Bear, Stearns & Co.
Phil Cusick
212-272-9078

BMO Nesbitt Burns
Paras Bhargava
416-359-6941

Charter Equity Research
Edward Snyder
415-931-9955

Credit Suisse
Paul Silverstein
212-325-5290

CreditSights
Ping Zhao
212-340-3851

Deutsche Bank North America
Brian T. Modoff
415-617-4237

Dresdner Kleinwort Wasserstein
Per Lindberg
41-01-267-1666

Genuity Capital Markets
David Hodgson
416-687-5342

Goldman Sachs & Co.
Brantley Thompson
212-902-9823

J.P. Morgan
Ehud A. Gelblum
212-622-6457

Jefferies & Co.
George C. Notter
415-229-1522

Kintisheff Research
Tsvetan Kintisheff
35-92-980-2044

Lehman Brothers
Inder Singh
212-526-9085

Merrill Lynch
Vivek Arya
212-449-2082

Merriman Curhan Ford & Co.
Tim Savageaux
415-262-1383

Morgan Stanley
Scott Coleman
212-761-6055

Oppenheimer & Co. Inc.
Ittai Kidron
212-667-6292

Pacific Crest Securities
Tim Daubenspeck
503-727-0634

RBC Capital Markets (US)
Mark Sue
212-428-6491

Robert W. Baird & Co., Inc.
Kenneth W. Muth
414-765-3773

Sanford C. Bernstein & Co., LLC
Paul Sagawa
212-407-5825

Scotia Capital
Gus Papageorgiou
416-863-7552

Seb Enskilda
Mats Nystrom
46-8-522-29550

TD Newcrest
Chris Umiastowski
416-983-3599

Thomas Weisel Partners
Hasan Imam
212-271-3698

UBS (US)
Nikos Theodosopoulos
212-713-3286

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