From: InfoSec News (alertsinfosecnews.org)
Date: Thu Jan 15 2009 - 01:42:21 CST

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http://www.forbes.com/wireless/2009/01/14/nortel-huawei-china-tech-wire-cx_ag_0114nortel.html

By Andy Greenberg
Forbes.com
01.14.09

As Nortel files for bankruptcy Wednesday, analysts point to sinking
sales, missed earnings and poor management as drivers for the Canadian
telecom's long descent to insolvency.

But a less-discussed factor may have scuttled the struggling networking
company's last hope for a savior: concerns over Chinese cyberspying.

Toronto-based Nortel, whose stock has lost more than 97% of its value in
the last year, announced in September that it would sell its metro
Ethernet business, an Internet-focused piece of the company that
generates about $1.5 billion a year in revenue.

The most interested potential acquirer of the Ethernet division may have
been Chinese company Huawei, which, according to Avian Securities, bid
$400 million for Nortel's offering in September. This was a generous
offer considering the company's current market capitalization, hammered
by debt and missed earnings projections, languishes at less than half
that value.

[...]

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