A Nortel-Alcatel Asset Swap?

If you believe in the adage “where there is smoke, there is fire”, LightReading reports there could be a deal on the horizon that could see Nortel swap its $2-billion GSM business for Alcatel-Lucent’s $1.2-billion PBX unit and possibly other assets such as cash and/or an enterprise-related unit. Lightreading suggests the deal makes sense because Nortel only has 7% of the GSM market – far below the 20% benchmark that Nortel CEO Mike Zafirovski wants each business unit to possess. If Alcatel got hold of Nortel’s GSM unit, it would have 17% to 18% market share, while Nortel would get a leading position in the European IP PBX market. Stay tuned.

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