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Nortel Stock Dives on Dunn Downfall
Investors bail, as management vows 'financial accountability' in the wake of CEO firing
April 29, 2004
1 Min Read
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
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