Nortel, the Canada-based telecom equipment maker, filed for Chapter 11. Now, several of its competitors may buy its most valuable divisions. Welcome to a world where a bankruptcy can be a good thing, at least for the troubled company's rivals.
According to The Wall Street Journal, Avaya, a phone equipment company, and Siemens Enterprise Communications are both likely to bid for pieces of Nortel. The Journalreports that"Nortel Networks Corp. is in talks to sell its two main businesses to rivals, a sign the firm could break itself apart rather than emerge from bankruptcy as planned."