Nortel Networks is seeking to sell its majority share in its
Korean joint venture with LG Electronics.
The Canadian telecoms equipment maker, which has been operating
under
chapter 11 bankruptcy protection since mid-February, owns a 50%
stake plus one share in LG-Nortel.
The decision to sell is aimed at securing "a sound future" for
the LG-Nortel business, the company said.
"This proposed divestiture represents the best path forward for
LG-Nortel, its customers and employees," said Peter MacKinnon,
LG-Nortel's general manager.
LG-Nortel is a strong, independent, technologically astute and
commercially savvy organisation, he added.
"LG-Nortel is a successful business with an accomplished
leadership team, a culture of innovation, a dedicated employee base
and a drive to succeed," said Mike Zafirovski, president and chief
executive at Nortel.
Nortel has appointed Goldman Sachs to find possible purchasers
for its stake in the profitable LG-Nortel, which is estimated to be
worth up to $1bn.
In late February, one of Nortel's European executives said the
company
expected to emerge from bankruptcy protection within 12 to 24
months.
The company is currently restructuring, which analysts expect to
include the sale of other Nortel assets.