Nortel Hell

Its hopes of rebuilding under bankruptcy protection effectively dashed by the ongoing financial crisis, Nortel is considering selling off its two biggest business units to rivals. Reportedly on the block: the company’s wireless-gear and office telecom equipment units, divisions that posted $6.7 billion in revenue last year–more than half the company’s sales. “What we are finding is that there may be a lot more value by selling rather than emerging,” a person familiar with the matter told The Wall Street Journal. “The company was surprised by the amount of interest and the number of calls.”

A sad turn of events for a company that was once a cornerstone of the telecom industry. For while the sale of those divisions would generate some much needed cash, they would also make it tougher for Nortel (NT) to emerge from bankruptcy protection as a viable company.