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Nortel eyes takeovers
But who are the targets?

By Reuters

Published: Monday 06 August 2007

Nortel has begun talks with potential takeover targets as North America's biggest maker of telephone equipment looks to expand its reach, its chief executive said on Thursday.

CEO Mike Zafirovski said: "We are doing lots of analysis internally on how to grow the company organically and we started discussions recently with companies that we believe can be adding to our growth trajectory."

He said: "We're confident that we'll be able to successfully integrate other activities if the pricing is appropriate."

He provided few details on the size or scope of any acquisitions that the Toronto-based company might be pursuing.

Zafirovski has said he is comfortable growing Nortel by acquisitions. However, Nortel has been preoccupied in recent months with a turnaround effort.

At the same time, competitors have consolidated, prompting some analysts to speculate that Nortel may have to do the same to compete effectively.

In May, reports emerged that Nortel had been in talks to take over US communications equipment maker Avaya, but no deal has materialised.