Nortel Networks, which generally has said it is interested in divesting business units and investments as it attempts to emerge from bankruptcy protection, confirmed in a press release that it is seeking a buyer for its majority stake (50 percent plus one additional share) in its joint venture with South Korean company LG.
The two companies established LG-Nortel about four years ago at a time when several North American vendors were beginning to look toward Asia for new market opportunities. The joint venture has focused on enterprise solutions and both wireless and wireline developments, the latter expressed through at least one major acquisition-the deal to buy wave division multiplexing-passive optical network company Novera Optics.
LG-Nortel acquired Novera Optics last year
Nortel said enterprise customers are slowing their buying