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Rumor: Motorola, Nortel discuss merger of wireless units

Posted: 13 Feb 2008 ?? ?Print Version ?Bookmark and Share

Keywords:joint venture? handset unit? wireless network?

Media reports circulated early this week that Motorola Inc. and Nortel Networks are in talks for joint venture that would combine their wireless network infrastructure, the Associated Press said.

The new company will make network equipment for wireless phone carriers and would have sales of about $10 billion, according to The Wall Street Journal, which cited people familiar with the talks.

The spokespersons for Motorola and Nortel decline to comment on the reports.

The joint venture, separate from a possible divestment Motorola's handset division, would reportedly be part of a restructuring effort by Greg Brown, who became Motorola's CEO Jan. 1.

Nortel CEO Mike Zafirovski was Motorola's president and chief operating officer before taking over as Nortel's chief in November 2005.

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