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Nortel pushes back Flextronics deal

Company delays divestiture of manufacturing assets, as it focuses on its financial restatement.

Nortel Networks said Thursday that it will delay the transfer of its Montreal manufacturing activities to Singapore-based Flextronics until the first quarter of 2005 to focus on completing its financial restatements. Originally, the company planned to make the transfer in the final quarter of this year, in an effort to focus more on the design and sale of telecommunications gear.

Operations at a Calgary facility will be transferred in the second quarter of 2005. The balance of the divestiture is expected to close in the first half of 2005. The announcement was part of Nortel's twice-monthly report to regulators, updating them on its ongoing financial restatements. In August, Nortel announced that it would lay off 3,500 workers as part of an effort to cut costs. Last month, it revised those numbers downward.