Rumor has it that Nortel Networks (OTC: NRTLQ) will sell its enterprise division in the near future.
This would be part of a broader plan to break the company apart instead of trying to restructure its way out of bankruptcy. The company is planning to sell its CDMA and LTE wireless businesses to Nokia (NYSE: NOK) for $650 million -- the first unit sale since the January bankruptcy filing.
Nortel's enterprise business focuses on larger corporate clients and consequently becomes the next prudent divestiture. The principal challenge that the telecom manufacturer faces is that it has almost no leverage to use in negotiations. It has to sell and the set of potential buyers is small. Any deal would be accompanied by a blue light in aisle four.
Even if the enterprise group is divested, Nortel will still have to move several other businesses in its effort to emerge from bankruptcy protection and hopefully return as a streamlined business that's ready for a recession-market fight.
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