The Net Times

Nortel announces “its intention to explore a divestiture of its Metro Ethernet Networks (MEN) business”

The Nortel (NYSE: NT) announcement states that “with a sustained and expanding economic downturn, the Company is experiencing significant pressure as Carrier customers cut back their capital expenditures further than previously expected and certain Enterprise and Metro Ethernet customers defer new IT and optical investments.”

Om Malik comments on the announcement and points out that “the rise of Chinese vendors such as Huawei has put further deflationary pressure on companies like Nortel, Alcatel-Lucent and Siemens. That said, Nortel’s business unit is a good one for anyone looking to buy. […] Nokia Seimens Networks could be a good candidate to snap up this business. Apart from that, there aren’t many takers.”