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 -30- For further information: Investor Relations: Angela McMonagle, Nortel Networks, (905) 863-6044, firstname.lastname@example.org; Business Media: Jeff Ferry, Nortel Networks, (703) 712-8339, email@example.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.
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