Nortel selling off LG joint venture

Increasingly troubled Nortel is now looking to sell off its 50 per cent plus one stake in joint venture LG-Nortel with the South Korean electronics maker, according to Reuters.

The collaborative unit was formed between the two companies in November 2005 to produce VoiP and videophones among other products.

Nortel, currently operating under bankruptcy protection, has been working to sell off subsidiary units as part of a restructuring effort.

The Canadian telecom company initially paid $145 million for the controlling stake in LG-Nortel, but raising money by selling units has been complicated by the global recession and weary investors.

According to the Reuters report, LG has approved the sale and investment bank Goldman Sachs has been retained to assist in making the sale.