by
Mark Evans
on Mon 13 Jun 2005 06:28 AM EDT |
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In the wake of
Nortel COO Gary Daichendt's abrupt departure last week, an intriguing issue raised in an
analysis by BusinessWeek is the buyer vs. seller scenario. Ever since Bill Owens took over as Nortel's CEO last April, he has made it clear Nortel will be a "consolidater rather than a consolidatee". This view was evident when Nortel spent $448-million in cash to buy PEC Solutions Inc. - a mid-tier systems integrator focused on the U.S. government. What may have created the difference in opinion between Owens and Daichendt is whether acquisitions are the right strategy. It could have been that Daichendt's strategic plans involved the sale of struggling business units - something Owens and Nortel's board have little or no interest in adopting. If you're Daichendt and realize a fundamental part of your approach to Nortel stands in stark contrast to the board and CEO, you either suck it up and stick around until the board is overhauled later this month at the AGM, or you pack your bags and head back to California.