Nortel Networks May End Up in Pieces

Nortel(NT Quote)'s chances of emerging from bankruptcy as planned are becoming increasingly slim, say telecom industry sources, despite the company's promise to rise, phoenix-like, from Chapter 11.

The Toronto-Ontario-based firm is in talks to sell off its two main businesses, according to The Wall Street Journal, suggesting that the firm may break itself up rather than emerge from bankruptcy as planned.

Nortel filed for protection from creditors in January in a last-ditch attempt to get its house in order after a turbulent period characterized by falling sales, a financial scandal and massive internal upheaval. ...