Nortel Networks

Companies Reach Definitive Agreement for the Sale of Nortel's UMTS Access Business to Alcatel-Lucent

    Toronto, Canada (ots/PRNewswire) - Nortel(x) (NYSE: NT , TSX: NT) today announced that it has reached a  definitive agreement for the sale of certain assets and the transfer of  certain liabilities related to the company's UMTS access business to  Alcatel-Lucent. It follows the signing of the non-binding Memorandum of  Understanding between the two companies announced September 1, 2006. The transaction is a US$320 million cash transaction, less significant deductions and transaction related costs. The parties have agreed to target  a closing at year end, and in any event, a closing within 90 days of  today's announcement. Approximately 1,700 of Nortel's UMTS access business  employees will transfer to Alcatel-Lucent.

    "The completion of this transaction will allow Nortel to increase resources dedicated to our strategic business priorities. It also positions  Alcatel-Lucent to be successful in the UMTS access market with an infusion  of great technology and great people," said Mike Zafirovski, president and  chief executive officer, Nortel. "This transaction is a win-win for both  companies, but more importantly, for our customers. We will continue to  work with Alcatel-Lucent to ensure the transition is seamless to our  customers."

    "Nortel is committed to developing the wireless technologies that will  deliver 4G Mobile Broadband and this provides one more step in reaching  that objective," said Richard Lowe, president, Mobility and Converged Core  Networks, Nortel. "Nortel is focused on providing the foundation for the  coming mobile video and multimedia revolution that mobile network operators  will soon face. At the same time, we will continue delivering superior  value to our GSM and CDMA customers, as well as our customers that have  deployed our UMTS core networks".

    Completion of the transaction is subject to, among other things, the  conclusion of consultations with works councils and other employee  representatives, finalization of the terms of certain ancillary agreements  including a transitional services agreement whereby Nortel will provide to  Alcatel-Lucent setup, infrastructure and application services for a defined  period of time as well as customary closing conditions including regulatory  approvals.

    About Nortel

    Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global  commerce, and secure and protect the world's most critical information. Our  next-generation technologies, for both service providers and enterprises,  span access and core networks, support multimedia and business-critical  applications, and help eliminate today's barriers to efficiency, speed and  performance by simplifying networks and connecting people with information.  Nortel does business in more than 150 countries. For more information,  visit Nortel on the Web at For the latest Nortel news, visit

    Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates ", "targets", "envisions", "seeks" and other similar language and are  considered forward-looking statements or information under applicable  securities legislation. These statements are based on Nortel's current  expectations, estimates, forecasts and projections about the operating  environment, economies and markets in which Nortel operates. These  statements are subject to important assumptions, risks and uncertainties,  which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from  those contemplated in forward-looking statements as a result of the  following (i) risks and uncertainties relating to Nortel's restatements and  related matters including: Nortel's most recent restatement and two  previous restatements of its financial statements and related events; the  negative impact on Nortel and NNL of their most recent restatement and  delay in filing their financial statements and related periodic reports;  legal judgments, fines, penalties or settlements, or any substantial  regulatory fines or other penalties or sanctions, related to the ongoing  regulatory and criminal investigations of Nortel in the U.S. and Canada;  any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and /or significant dilution of Nortel's existing equity positions resulting  from the approval of its proposed class action settlement; any unsuccessful  remediation of Nortel's material weaknesses in internal control over  financial reporting resulting in an inability to report Nortel's results of  operations and financial condition accurately and in a timely manner; the  time required to implement Nortel's remedial measures; Nortel's inability  to access, in its current form, its shelf registration filed with the  United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit  rating due to Nortel's restatements of its financial statements; any  adverse affect on Nortel's business and market price of its publicly traded  securities arising from continuing negative publicity related to Nortel's  restatements; Nortel's potential inability to attract or retain the  personnel necessary to achieve its business objectives; any breach by  Nortel of the continued listing requirements of the NYSE or TSX causing the  NYSE and/or the TSX to commence suspension or delisting procedures; (ii)  risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and  pricing pressures for its products due to global economic conditions,  significant competition, competitive pricing practice, cautious capital  spending by customers, increased industry consolidation, rapidly changing  technologies, evolving industry standards, frequent new product  introductions and short product life cycles, and other trends and industry  characteristics affecting the telecommunications industry; the sufficiency  of recently announced restructuring actions, including the potential for  higher actual costs to be incurred in connection with these restructuring  actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's  performance if its expectations regarding market demand for particular  products prove to be wrong or because of certain barriers in its efforts to  expand internationally; any reduction in Nortel's operating results and any  related volatility in the market price of its publicly traded securities  arising from any decline in its gross margin, or fluctuations in foreign  currency exchange rates; any negative developments associated with Nortel's  supply contract and contract manufacturing agreements including as a result  of using a sole supplier for key optical networking solutions components,  and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives, including completion of the sale of its UMTS  access business to Alcatel-Lucent; additional valuation allowances for all  or a portion of its deferred tax assets; Nortel's failure to protect its  intellectual property rights, or any adverse judgments or settlements  arising out of disputes regarding intellectual property; changes in  regulation of the Internet and/or other aspects of the industry; Nortel's  failure to successfully operate or integrate its strategic acquisitions, or  failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its  business, or create an effective risk management strategy; and (iii) risks  and uncertainties relating to Nortel's liquidity, financing arrangements  and capital including: the impact of Nortel's most recent restatement and  two previous restatements of its financial statements; any inability of  Nortel to manage cash flow fluctuations to fund working capital  requirements or achieve its business objectives in a timely manner or  obtain additional sources of funding; high levels of debt, limitations on  Nortel capitalizing on business opportunities because of support facility  covenants, or on obtaining additional secured debt pursuant to the  provisions of indentures governing certain of Nortel's public debt issues  and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for  obligations arising from certain normal course business activities, or any  inability of Nortel's subsidiaries to provide it with sufficient funding;  any negative effect to Nortel of the need to make larger defined benefit  plans contributions in the future or exposure to customer credit risks or  inability of customers to fulfill payment obligations under customer  financing arrangements; any negative impact on Nortel's ability to make  future acquisitions, raise capital, issue debt and retain employees arising  from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or the share consolidation resulting  in a lower total market capitalization or adverse effect on the liquidity  of Nortel's common shares. For additional information with respect to  certain of these and other factors, see Nortel's Annual Report on Form10-K/ A, Quarterly Reports on Form 10-Q and other securities filings with the SEC . Unless otherwise required by applicable securities laws, Nortel disclaims  any intention or obligation to update or revise any forward-looking  statements, whether as a result of new information, future events or  otherwise.

    (x) Nortel, the Nortel logo and the Globemark are trademarks of Nortel  Networks.

ots Originaltext: Nortel Networks
Im Internet recherchierbar:

For further information: Pat Cooper, +1-(425)-450-7523,; Jay Barta, +1-(972)-685-2381,; Isabelle Tadmoury, +33-169551291,

Weitere Meldungen: Nortel Networks

Das könnte Sie auch interessieren: