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Exec Warns: More Layoffs If NSN Doesnt Get Nortel

More Nortel Networks Corp. (NT) jobs could be lost if a bidding war erupts for the company’s wireless unit.

That’s the latest “suggestion” from a Nokia Siemens Networks exec, proffered on Tuesday at the Economic Club of Canada. Nortel’s bidding price will increase if more interested buyers try to vie for the company, said Sue Spradley, who runs NSN’s North American operations. If the winning buyer overpays (a subjective number??), executives will have to cut more costs, she said.

“The risk there is that in the end you end up doing layoffs. That’s the fine balancing act,” Spradley told the Canadian Press.

And NSN may have competition on its hands. Two groups of ex-Nortel executives are trying to raise enough money to fight NSN’s $650 million bid and private equity firm MatlinPatterson has confirmed it wants to buy all of Nortel, not just part of it.


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