TORONTO (CP) — Nortel Networks and Motorola Inc. are reported to be discussing a combination of their wireless network infrastructure divisions into a joint venture.
The Wall Street Journal, citing people familiar with the situation, said the proposed move would be the latest response to slowing growth in the telecommunications equipment industry.
Nortel spokeswoman Ann Fuller said Monday that the company does not comment on ''rumour and speculation,'' which is ''the same comment we gave to WSJ, when they called.''
The reported talks, separate from a possible Motorola divestment of its handset division, would be part of a restructuring effort by Greg Brown, promoted in November to become CEO of the American telecom-gear giant effective Jan. 1.
If consummated, the Nortel-Motorola joint venture would likely have annual sales of about US$10 billion.
Nortel chief executive officer Mike Zafirovski was Motorola's president and chief operating officer before taking over as head of the Canadian-based company in November 2005.
Nortel shares were up 20 cents to C$11.24 in early trading on the TSX, with a 52-week high and low of $37.35 and $10.86.
