Nortel seeking to sell LG-Nortel stake
From the 'finally selling stuff off' files:
Nortel Networks, currently under the shadow of creditor protection, is seeking to sell off it's majority stake in its LG-Nortel joint venture. LG-Nortel is a joint venture launched in 2005 between Nortel and LG Electronics in Korea and apparently it's reasonably profitable too.
Nortel stated that the LG-Nortel group had a Management Operating Margin( Management Operating Margin is defined as revenues less cost of revenues, SG&A and R&D expense) of $341 million, or 27 percent in 2008. Considering that Nortel as a whole lost $507 million last quarter alone, the LG-Nortel performance isn't too shabby.
"LG-Nortel is a successful business with an accomplished leadership team, a culture of innovation, a dedicated employee base and a drive to succeed," said Mike Zafirovski, President and CEO, Nortel in a statement. "As we work to evaluate the ultimate path forward for all of our businesses, this decision will allow LG-Nortel to embark on the next phase of its journey and realize its full potential."
How much the sale of Nortel's stake in LG-Nortel might be worth
will be interesting to see. Clearly I would expect that the sale will
yield more than the $18 million Nortel received for it's sale of its Alteon products earlier this year.