Nortel Shares Rebound After Falling More Than 50%

Nortel Networks Corp. (NT) shares were on the rebound Thursday, rising more than 8% in morning trading.

The stock fell more than 50% Wednesday, after Nortel lowered annual forecasts and said it was looking to sell a profitable business unit.

The telecommunication company said 2008 revenue would be 2% to 4% lower than in 2007 and third-quarter revenue would be about $2.3-billion, less than the $2.66-billion analysts estimated.

Nortel added that it wants to sell its Metro Ethernet Networks business, which represented 14% of its most recent quarterly sales.

Comments

[Bo Gowan - ...:]

Correction to this article - the reference in the article that Nortel "wants to sell its Ethernet business" is too general and is misleading. Nortel is looking to sell its Metro Ethernet Networks business, which includes its optical (photonics) solutions, and CARRIER Ethernet solutions.

Nortel's Enterprise Ethernet solutions are not part of the Metro Ethernet Networks business, and are not part of the intended sale.

2008 Sep 22 11:13 AM