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Nortel Networks Announces Proposed Two-for-One Stock Split


    
    BRAMPTON, ONTARIO, Jan. 25 /CNW/ - The board of directors of Nortel
Networks Corporation (NYSE/TSE: NT) today approved, subject to common
shareholder and regulatory approval, a division of the common shares of Nortel
Networks* on a two-for-one basis. Common shareholders of Nortel Networks
will be asked to approve the two-for-one stock split at the Corporation's next
scheduled meeting of common shareholders.
    "Since July 29, 1999, the day we announced the one-for-one stock
dividend, we have continued to experience strong business momentum and there
has been an approximate 125% increase in our share price" said John Roth,
president and chief executive officer, Nortel Networks. "We expect that this
two-for-one stock split will make our common shares more accessible to a
broader base of investors".
    If effected, the stock split would increase the number of outstanding
Nortel Networks' common shares from approximately 1.38 billion to
approximately 2.76 billion.
    Nortel Networks is a global leader in telephony, data, wireless and
wireline solutions for the Internet. The Company had 1999 revenues of US$22.2
billion and serves carrier, service provider and enterprise customers
globally. Today, Nortel Networks is creating a high-performance Internet that
is more reliable and faster than ever before. It is redefining the economics
and quality of networking and the Internet through Unified Networks* that
promise a new era of collaboration, communications and commerce. Visit us at
www.nortelnetworks.com.

    Certain information included in this press release is forward-looking and
is subject to important risks and uncertainties. The results or events
predicted in these statements may differ materially from actual results or
events. Factors which could cause results or events to differ from current
expectations include, among other things: the impact of price and product
competition; the dependence on new product development; the impact of rapid
technological and market change; the ability of Nortel Networks to integrate
the operations and technologies of acquired businesses in an effective manner;
general industry and market conditions and growth rates; international growth
and global economic conditions, particularly in emerging markets and including
interest rate and currency exchange rate fluctuations; unanticipated impact of
Year 2000 issues; and the impact of consolidations in the telecommunications
industry. For additional information with respect to certain of these and
other factors, see the reports filed by Nortel Networks with the United States
Securities and Exchange Commission. Nortel Networks disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

    * Nortel Networks, the Nortel Networks logo, the Globemark, Unified
Networks, and How the world shares ideas are trademarks of Nortel Networks.
    %SEDAR: 00000596EB



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For further information: Investor Relations: Angela McMonagle, Nortel 
Networks, (905) 863-6044, mcmona@nortelnetworks.com; Business Media: Jeff 
Ferry, Nortel Networks, (703) 712-8339, jferry@nortelnetworks.com;
Archived images on this organization are available through CNW E-Pix at 
www.newswire.ca. Images are free to members of The Canadian Press.

SOURCE Bell Glomedia

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