Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Nortel Stock Dives on Dunn Downfall

Investors aren't in the mood to wait for explanations of Nortel Networks Ltd. (NYSE/Toronto: NT) CEO Frank Dunn's firing. Dunn, who was sacked along with former CFO Douglas Beatty, former controller Michael Gollogly, and several others, was replaced this morning by William Owen, who has been a company director since 2002 (see Nortel Dismisses Dunn).

The networking equipment maker's shares fell $1.62 (28.72%) to $4.02 in midday trading on Wednesday after the company's housecleaning announcement. Today's freefall has taken Nortel's stock price down more than 47 percent from its 52-week high of $8.50.

Why the selloff? Here's a reason: Given Nortel's financial mess, it's possible the company isn't nearly as healthy as it has been telling the public...

Get the full story on Light Reading.

Phil Harvey, News Editor, Light Reading