April 29, 2009 / 2:16 AM / 8 years ago

Nortel looking to sell stake in LG-Nortel: report

<p>The Nortel logo is seen outside their head office in Toronto May 6, 2008.Mike Cassese</p>

NEW YORK (Reuters) - Nortel Networks, the Canadian telecommunications equipment maker, is looking to sell its controlling stake in a South Korean joint venture to raise cash, the Financial Times website reported on Tuesday

Citing people familiar with the situation, the website said Nortel had hired Goldman Sachs to find a buyer for its 50 per cent stake plus one share in LG-Nortel, the telecommunications equipment maker in which LG Electronics is the other partner.

The website, citing dealmakers, said that a sale could value the joint venture at close to $1 billion.

Nortel, which has just asked the Canadian bankruptcy courts for extra time to complete its reorganization plan, could not be reached immediately for comment.

It told the Financial Times that it could not comment "on market rumor or speculation".

Reporting by Ilaina Jonas; editing by Carol Bishopric)

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