Mergers & acquisitions

Light Readers See Nortel Staying Single

Nearly half the Light Readers who took our recent poll say Nortel Networks Ltd. is more likely to go it alone than to merge with another vendor.

The Canadian vendor’s new enterprise space tie-up with Microsoft Corp. (Nasdaq: MSFT), announced Tuesday, seems to be a nod in that direction by the company. (See Nortel Cuts 1,100 Jobs.) The company's are calling it an "alliance," one that Nortel CEO Mike Zafirovski believes will yield his company $1 billion in revenue by 2009. (See Nortel, Microsoft Team Up.)

But plenty of our pollees see M&A in Nortel's future. Twenty percent say Nortel will soon buy another company. Thirty-two percent believe Nortel will “get bought.”

Nortel and Huawei Technologies Co. Ltd. were recently cooking up plans for a joint venture, but ended up calling it off in June. (See Nortel, Huawei Kill JV.) But some believe Nortel may try a similar arrangement with another company in lieu of an outright merger or acquisition.

If that were to occur, readers believe Motorola Inc. (NYSE: MOT) is the most likely JV partner. Other popular candidates were Juniper Networks Inc. (NYSE: JNPR) with 17 percent of the vote, and Cisco Systems Inc. (Nasdaq: CSCO) and Huawei each getting 12 percent.

Another popular pick as a potential Nortel partner is Wal-Mart, which got 11 percent of the vote. Whether Wal-Mart or Huawei, there's a tendency to believe Nortel should pair up with a low-price leader.

The poll -- Nortel's Next Move -- will close at 5 p.m. ET on Thursday, July 20.

— Mark Sullivan, Reporter, Light Reading

pavlovsdog 12/5/2012 | 3:47:58 AM
re: Light Readers See Nortel Staying Single

On the other hand, why rent when you can own!
yabbadabbado 12/5/2012 | 3:47:55 AM
re: Light Readers See Nortel Staying Single
I don't believe it......patience is a virtue. An alliance/friendship usually ends up as a marriage. Microsoft/Nortel oh yes indeed it sounds like the right stuff to me.
olsen 12/5/2012 | 3:47:54 AM
re: Light Readers See Nortel Staying Single Why is the JV LG-Nortel always mentioned as "Oh, by the way - Nortel has a thing going in Korea"?
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