Nortel may lose NYSE listing
Nortel Networks said it has six months to bring its average share price back above $1 US after being warned by the New York Stock Exchange it is at risk of having its stock delisted.
The NYSE said the telecommunications company may have its stock pulled from the market for failing to meet the standards of continued listings because the stock has had an average closing price under $1 US for 30 consecutive trading days up to Dec. 8.
The company said it will tell the NYSE within 10 business days that it plans to fix the problem.
The Toronto-based company said that if its average closing price does not sufficiently improve, it may consider presenting a proposal to its shareholders for a consolidation of its outstanding common shares at its annual meeting planned for spring 2009.
Nortel has already gone through one consolidation in recent years to support its stock price. On Dec. 1, 2006, Nortel did a 1-for-10 stock consolidation. Its shares jumped 10-fold in price, but the number of shares plunged to 433 million from 4.33 billion.
Nortel shares were unchange at 40 cents US on the NYSE on Thursday. On the TSX, the stock slipped 1.5 cents to end at 47.5 cents.
On Wednesday, the Wall Street Journal reported that Nortel Networks Corp. has sought advice regarding possible bankruptcy protection.
The U.S. paper said the company is not planning any imminent financial filing but has engaged different professionals to make various plans for the upcoming quarters. The Journal cited unnamed people familiar with Nortel's situation as the sources for its story.