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Metropolitian 12/5/2012 | 1:52:51 AM
re: Nortel Shares Fly South There is no way Cisco would acquire Nortel.

Historically, Cisco acquires companies that either strengthen its core business or fill a niche in its portfolio that will become the next latest "must have technology".

John Chambers's acquistions are well thought out and calculated unlike John Roth who went on a blind acquistion binge with no rhythme or reason.

Look at Nortel's assets from a Cisco point-of-point.

1) Enterprise: Cisco is the leader here, why would it want to buy a second rate enterprise product line ?

2) Wireline: This is fast becoming a dead industry along with buggy whips, mechanical cash resisters and vacuum tube radios.

3) Wireless: A good Nortel asset, but has nothing to do with any of Cisco's core businesses.

4) Optical: A loss leader. Cisco is losing enough money with its Cerent acquistion. It doesn'e need another cash burning product line.

5) Nortel Management: Rotten as the dead wood at the bottom of a rain forest.

Cisco's John Chambers is a genuine people oriented manager and his presence at Cisco for the last 15 years proves his value, unlike Nortel which has been through 6 CEOs in the same time frame (with only Jean Monty being the CEO of any value to Nortel and its shareholders).

Metro
technonerd 12/5/2012 | 1:52:51 AM
re: Nortel Shares Fly South It takes the U.S. SEC to shed some light on the pinatas in the closets. Where, oh where, is any Canadian securities commission? Probably waiting for Godot.
Yeah, and relying on American securities regulators is truly desperate. Talk about your guard dogs with foam rubber teeth ...


If people flog the proverbial horse regarding Cisco's ability to produce carrier grade equipment, how about pointing out the failing grade Nortel and Lucent get in IP phone technology.
I agree with that criticism. As a result, it might make sense from Cisco's viewpoint for the capabilities to be combined. I suspect Cisco will be able to buy Nortel's TDM technology for petty cash one of these days.
dljvjbsl 12/5/2012 | 1:52:50 AM
re: Nortel Shares Fly South If people flog the proverbial horse regarding Cisco's ability to produce carrier grade equipment, how about pointing out the failing grade Nortel and Lucent get in IP phone technology.


I agree with that criticism. As a result, it might make sense from Cisco's viewpoint for the capabilities to be combined. I suspect Cisco will be able to buy Nortel's TDM technology for petty cash one of these days.


Nortel has excellent and market leading VoIP technology. it is being used by both carrier and enterprise customers. So I do not understand this commet at all.

As for TDM systems. Since:

Sales of these have been declining for years and

Nortel has outsourced the manufacturing and

The TDM designers were among the first to be laid off from Nortel three years ago,

I see two things:

The first is why Cisco would want to buy a product with no future in a declineing market.

The second is just what would Cisco buy.

The product is obsolete, the market is vanishing and the R&D capability is gone.
technonerd 12/5/2012 | 1:52:49 AM
re: Nortel Shares Fly South Maybe you're right that Cisco wouldn't buy Nortel. I was thinking along the lines of "a price for everything, and everything at its price." There have to be some TDM assets that matter, but who knows, maybe not.
morye 12/5/2012 | 1:52:48 AM
re: Nortel Shares Fly South LR,

Please stop posting all of the NT articles as your atonement for years of supporting the Canadian paper tiger. We all know you have always been against LU because it is an American company. Watch out there are alot of pissed off bond holders who were duped in buying expensive Nortel bonds. The bond holders could take over soon and make the company an American company under American laws and regulations.

Now that you have divorced NT out of Embarrassment, I hear Alcatel is available. LR and Alcatel speak the same language.
CoolLightGeek 12/5/2012 | 1:52:47 AM
re: Nortel Shares Fly South >Please stop posting all of the NT articles as
>your atonement for years of supporting the
>Canadian paper tiger. We all know you have
>always been against LU because it is an American
>company.

LR has been biased but they definitely don't seem anti-American to me: after all, they like CSCO.
LR definitely has a "data-centric" background even though "Light"-part intentionally implies expertise in Optical Networking. NT was clearly the only large true optical networking vendor that LR held dear. (Sorry: CSCO still does count as large in this space)

It could after all have sometime to do with where LR gets its advertising dollars from. But some might think that is too cynical to contemplate. ;)

http://www.lightreading.com/bo...

CLG
dodo 12/5/2012 | 1:52:37 AM
re: Nortel Shares Fly South Re posting 10

the BOD will have to clean house also , not only the management.
Some of the dead wood have to go.Thank god we had John Cleghorn, an ex-CEO who is the driving force for cleaning-up of the executives. He should also look into reforming the board starting with its chairman. We don't need lip service but action

Just my 2 cents
dodo 12/5/2012 | 1:52:36 AM
re: Nortel Shares Fly South Mach

I agree with your arguments but I do believe that John Cleghorn is not a passive BOD member. He did a good job when he was at the helm of the Royal Bank and he does not become a director to fly in jets and ride the limos. He is a simple fellow with a lot of integrity and smarts.

I don't believe that Nortel can redeem itself after this "laissez-faire" and the chairman of the BOD is as "guilty" as the CEO. It was on the instigation of Wilson that the BOD approved the promotion of Dunn and as Chairman, he did not ensure that the audit committee does due diligence before approving the excessive bonuses, especially for the senior execs.

In an environment where the supply for talent is greater than the demand, it is "bull" to allow such excesses on the mere excuse that you want to retain the key personel. Some of the execs, without naming them(someone did it already on another post) don't know their head from their toes let alone differentiating the technologies or knowing theie competitors strengths.

Either the Chairman is living in his own bubble and he does not follow what has been written or said in the media-especially by the business journalists or he is in just to fill his pockets instead of protecting the shareholders.

But I do hope that John Cleghorn will push for a board reform
Machavelli 12/5/2012 | 1:52:36 AM
re: Nortel Shares Fly South Dodo,

Unfortunately, it is a vicious circle.

The board of directors (BOD) at Nortel brings in their friends from their golf clubs or other exclusive executive clubs, when a director leaves. There is a lot of inbreeding here, so we get stuck with people with the same lack of values, lack of ethics and plenty of greed.

The BOD selects the CEO. Red Wilson on the BOD was the "genious" who brought us Frank Dunn as CEO.

The CEO in turns selects his cronies and sycophants for his managment team.

The CEO and management hold most of the shares and stock options and therefore their combined voting rights retains or brings BOD members of their choosing at yearly stock holder meetings.

Bear in mind, you do not need a majority 50%+ of shareholders to swing things your way. Most of the time 70% or more of the sharholders do not vote or do not give their proxies to anyone to vote on their behalf. If only 30% of the votes are in, 15% or more of the shareholder shares can vote in or vote out issues (like whose is a BOD). That is why the SEC has a 5% ownership disclosure rule because typically a couple of guys with 5% of the total stock outstanding each can control the entire company.

That is why you should always exercise your votes at shareholder meeting when the forms come in the mail. Your voting power is actually ten times stronger than you think.

As for Bill Owens as the new CEO, when I see him focus primarily on customers and employees first and on his mangement team last, I will be convinced that real change is on its way.

"M"

whyiswhy 12/5/2012 | 1:52:32 AM
re: Nortel Shares Fly South "Isn't it a fact that only those proficient in golf, and that have good depth perception to navigate the treacherous difference between behind-kissing and brown-nosing, are able to reach the next rung on the ladder? What happens when an entire organization is filled with those gifted as such?"

Too true! A classic! ROTFLMAO!

Typically what happens when the board of directors help pick the next CEO. They pick similarly talented folks. Then the shix rolls downhill very fast.
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