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Nortel delays IPO launch
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March 29, 2001: 3:56 p.m. ET
Telecom equipment provider shelves offering of fiber optic-unit for now
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NEW YORK (CNNfn) - Nortel Networks Corp. confirmed Thursday that it has delayed plans to launch an IPO of its lucrative fiber-optic component business.
While Nortel never publicly set a timeline for the offering, it was expected to take place this summer. Now the high-tech company could launch the IPO sometime at the end of this year, a spokesman said.
"Nortel Networks continues to examine all the options to unleash the full value of its components business, even in these challenging times," said spokesman David Chamberlin.
Nortel is still committed to floating an offering of its components, but will take its time exploring alternatives.
 The company has yet to decide whether to float the offering in the United States, in Canada, or both, Chamberlin said.
"Nobody in their right mind would do an [initial public offering] today," Nortel CEO John Roth told the Globe and Mail Wednesday. "It would just lay on the floor."
He added that it would be foolish to launch an offering in such a depressed market for technology stocks.
Roth made the comments after Nortel Networks announced Tuesday another earnings warning. Nortel said it expects to post a wider-than-expected first-quarter loss, in the range of 10 cents-to-12 cents per share. Nortel will also cut an extra 5,000 positions.
In February, Brampton, Ontario-based Nortel (NT: Research, Estimates) announced it would lay off 10,000 employees through streamlining and realignment activities. The telecommunication equipment maker boosted that number Tuesday to 15,000 and plans to complete the additional 5,000 reductions by midyear.
Lucent Technologies (LU: Research, Estimates) also launched an offering of its microelectronics unit, Agere Systems Inc., this week. The huge $3.6 billion offering from Agere gained only 5 cents in its debut.
Allentown, Pa.-based Agere (AGR.A: Research, Estimates) designs and makes optoelectronic components for communications networks and integrated circuits for computer equipment, and is a leader in sales of communications semiconductors.
Nortel shares have plummeted from their 52-week high of $86. Shares dropped 58 cents, or 4.14 percent, to $13.42 Thursday, Agere managed to stay afloat, rising a penny to $6.03 and Lucent dropped $1.01 to $9.26.
Ad firm shelves IPO
Global advertising firm Bcom3Group Inc. shelved plans for launching an initial public offering this year, citing poor market conditions.
However, the company said it remains committed to launching a public offering, CEO Roger Haupt said in a letter to employees Wednesday.
The company announced a year ago its intent to pursue an IPO within 18 months.
"I'm sure you would agree that today's picture is very different from that of a year ago," Haupt said. " These conditions are likely to persist for some time."
Chicago-based Bcom3Group, with over 18,000 employees, was formed through the merger of The Leo Group and The MacManus Group. It is a leading global advertising firm serving such clients as Procter & Gamble, General Motors and the Coca-Cola Co. Japan-based Dentsu holds a 20 percent stake in the firm.
Bcom3Group could not be reached for comment. 
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