By Jon Bernstein, 28 July 2000 08:28
NEWS Talks between Nortel and a leading fibre optic specialist made public earlier this week have been abandoned, ending the prospect of a $100m tie up. The deal - effectively a takeover of Nortel - would have seen the Canadian telecoms equipment manufacturer integrate its optical components division with US firm Corning as part of a stock share deal. The result would have given Nortel a 60 per cent stake in the optical fibre company. Nortel has not commented on the breakdown in talks but speaking to the Financial Times, Corning's chief financial officer Jim Flaws said: "Independence was important but it wasn't the only issue." The latest news will comes as a relief to JDS, the largest supplier of optical components and a company which counts Nortel, as well as Lucent and Alcatel, among its customers. A Corning/Nortel tie up would have offered serious rivalry to JDS's dominance.
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