"This proposed operating model is an evolution of one that has already been implemented successfully" in Nortel Networks in North Carolina and Massachusetts, said Chahram Bolouri, president of Nortel's global operations.
Nortel said Thursday the deal, if completed, would see the Singapore-based firm manage more than $2 billion of Nortel Networks annual sales costs. It would also see Nortel transfer more than $500 million of manufacturing and inventory assets to Flextronics.
Nortel said it anticipated receiving from Flextronics more than $500 million in cash over a nine-month period, primarily for inventory and other assets.
"At this stage, however, there can be no assurances that these discussions will lead to a binding agreement," Nortel said.
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