Nortel sells optical components business

Nortel is to sell its optical components business to UK company Bookham Technology and in a deal valued at just over $100m (€101m).

In exchange for the business Nortel will receive 30% of Bookham, around $10m (€10m) in cash and includes a supply deal for the first six quarters.

Nortel will not get a place on the board of Bookham which intends to remain totally independent.

This unit of Nortel has recently been loss making and analysts consider that Nortel was fortunate to get it off its books.