Quid pro quo: EADS and Nortel exchange holdings

21 Jul 2003

Nortel Networks of Canada has announced plans to swap holdings with European Aeronautic Defence and Space Company (EADS). At present, EADS retains a 45% stake in Nortel Networks France and a 42% stake in Nortel Networks Germany; whilst Nortel retains a 41% stake in EADS Telecom. The swap will give both companies 100% control of their respective business sectors. It’s reported that EADS will receive positive cash compensation in the deal, but the amount remains undisclosed. Having 100% control of their own companies will allow EADS Telecom and Nortel to focus more on their core competencies.