Feeds

Old guard want to save Nortel

Need some cash, though

Mobile application security vulnerability report

A consortium of old guard Nortel execs led by ex-CEO Bob Ferchat believe they can save Nortel, if only the Canadian government will help them out with a bit of funding - say about $1bn.

Bob Ferchat is supported by other senior Nortel figures - including David Paterson, David Mann and Ian Craig. Ferchat is an ex-president of the networking and telecom kit maker.

The group has some private funding in place but is also asking the Canadian government for money. It has met at least two Canadian ministers. If the money was forthcoming Nortel would keep about three quarters of its business and concentrate on building a fast broadband network for Canada, CBC reports.

Aside from an appeal to Canadian patriotism the group also have a cunning way to sweeten the pill for the government. Nortel has earned several million Canadian dollars in tax credits because of all the research and development money it has spent over the years. The group wants the government to change the rules, which require companies to be profitable before spending credits, for instance, so this money can be used to build the national network.

The high-speed network is being plugged as a national infrastructure project, like Australia's, which will help spark a Canadian tech renaissance, the Ottawa Citizen reports.

This is in stark opposition to Nortel's current strategy of selling itself off to various different companies in order to raise as much cash as possible for creditors.

Nortel has been brought low by a series of problems, ending with telcos reducing spending as the credit crunch began to bite late last year. In 2007 the company paid $35m in damages to shareholders to settle allegations that it inflated revenues between 2000 and 2003.

The company has limped from disaster to disaster - it only just missed going bust in the dot-com crash. In the second three months of 2001 Nortel lost a record-breaking $19.6bn. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
Gartner: To the right, to the right – biz sync firms who've won in a box to the right...
Magic quadrant: Top marks for, er, completeness of vision, EMC
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.