Nortel pushes back Flextronics deal
Company delays divestiture of manufacturing assets, as it focuses on its financial restatement.
Marguerite Reardon Former senior reporter
Marguerite Reardon started as a CNET News reporter in 2004, covering cellphone services, broadband, citywide Wi-Fi, the Net neutrality debate and the consolidation of the phone companies.
Nortel Networks said Thursday that it will delay the 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.