Nortel Shares End Week on Higher Note

"CFIUS regulations may not be as strict because this isn't an entire bid on the company and/or business unit," said the analyst, acknowledging Nortel's significant U.S. presence.

Nortel, which competes with Cisco Systems(CSCO Quote) and Motorola(MOT Quote), has seen its stock plummet after posting a a $3.4 billion loss in its recent third-quarter results.

Despite Friday's rally, the firm's stock is trading well below its 52-week high of $13.71 and perilously close to its 21-cent low. Nortel even received a stern ultimatum last month: Boost share price or get booted from the NYSE.