Nortel: No Delisting Actions Yet
Nortel Networks Ltd. (NYSE/Toronto: NT) issued its latest fortnightly status update, and set analysts at Lehman Brothers wondering about the potential delisting of the vendor's shares from the New York and Toronto stock exchanges (see Nortel Provides Latest Update).
Nortel, which still has a number of financial filings outstanding, stated that both exchanges have "verbally confirmed" that they haven't started -- and don't intend to start -- any "suspension or delisting procedures" at present, although that situation could always change (see Nortel: Financial Stuff Really Complex).
Specifically, the NYSE has told Nortel that it plans to conduct a review of Nortel's listing status if the vendor hasn't filed its Form 10-K for 2003 by December 30. In that instance, the exchange could allow Nortel's stock to continue trading for a further three months.
In a research note issued today, Lehman analyst Steve Levy writes that "it seems that the company has just been given until roughly March 31  before a delisting is likely."
He also noted, given the nature and tone of the whole update, that "Nortel continues to slowly remove uncertainty surrounding its business and its stock," but that "the remaining uncertainty is still too large to warrant purchase of NT shares."
Nortel share price was up by 16 cents (5%) this afternoon, at $3.33.
— Ray Le Maistre, International News Editor, Light Reading
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