BRAMPTON, Ontario-Speculations of takeover and delisting continue to swirl around Nortel Networks Ltd. as the Canadian telecom equipment maker lowered its third-quarter outlook by 15 percent, driving its shares down by about 21 percent. The stock now trades at about 52 cents a share.
“Further deterioration in spending by service providers, generally in the United Sates and for wireless networks in Asia, has resulted in the revised outlook,” said the company in a press release.
The company had expected the revenue outlook to drop by “up to approximately 10 percent.”
To avoid delisting, however, the company hopes to consolidate its shares through a reverse stock split. The proposal, which it intends to present to the company’s annual meeting in spring 2003, will raise the share price to between $10 and $20.
