Nortel selling stake in LG venture
1 min read
Nortel Networks is seeking a buyer for its majority stake in LG-Nortel, its Korean joint venture with LG Electronics.
Nortel, which fell into bankruptcy protection in January, announced that it will file a motion with the Ontario Superior Court for approval of a proposed sale process, to which LG has agreed.
Peter MacKinnon, LG-Nortel's chairman and general manager, said the move was positive and represented the best path forward for the company. He said: "LG-Nortel is a strong, independent technologically astute and commercially savvy operation. With a competitive portfolio of wireless, wireline and enterprise solutions, LG-Nortel is a market leader in Korea and select international markets. Our number one priority is the continued success of LG-Nortel and our customers."
Nortel's president and ceo, Mike Zafirovski (pictured), added: "LG-Nortel is a successful business with an accomplished leadership team, a culture of innovation, a dedicated employee base and a drive to succeed. As we work to evaluate the ultimate path forward for all of our businesses. This decision will allow LG-Nortel to embark on the next phase of its journey and realise its full potential."
