Nortel Seeks Sound Future for LG Stake

Nortel Networks Corp. (NT) said Wednesday it’s looking for someone to buy its majority stake in the LG-Nortel partnership.

The joint venture operates under the Nortel Networks Ltd. subsidiary and, according to Nortel, “is a profitable, standalone business … and has not filed for creditor protection.”

Nortel’s parent company filed bankruptcy in January.

LG Electronics and Nortel combined forces in November 2005 to develop and sell WiMAX products. LG and certain courts in Canada must approve any proposed sale. Goldman Sachs will help with the divestiture process.

Nortel said in its press release it’s seeking “to secure a sound future for the LG-Nortel business, its valued customers and loyal employees.”