No New Nortel?

4:20 PM -- From analyst Ittai Kidron of Oppenheimer & Co. Inc. , here's an opinion why Nortel Networks Ltd. won't emerge from bankruptcy:

Consumer companies have been known to go through Chapter 11 and emerge just fine, he says, but the same isn't true of businesses built on deeply considered relationships.

"Burger King was in bankruptcy, but you didn't care. Things that have long-term relationships -- after you undermine that, it's hard."

The survival theory I've been hearing is that some portion of Nortel, some set of businesses adding to $2 billion or $3 billion in yearly revenues, could be left to carry on the name. (See Nortel Files for Bankruptcy Protection and Should Nortel Be Sold for Parts?) It's feasible on paper, but Kidron -- who stopped covering Nortel last year when he was convinced the company wouldn't progress -- might have a point.

— Craig Matsumoto, West Coast Editor, Light Reading

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