Mumbai/Bangalore: Canada-based telecommunications equipment maker Nortel Network Corp. plans to acquire a stake in Tejas Network India Ltd, the Bangalore-based manufacturer of optical networking products that enables high-speed data transfer.
The Foreign Investment Promotion Board is likely to decide on Nortel’s application for acquiring up to 12,954 shares of Tejas Network on 17 August, says the board’s website.
“There is a lot of interest from the investor community in Tejas Networks as we ramp up operations to take our optical networking products to the global markets,” said Siva Ramamoorthy, group marketing director, Tejas Network, while declining to comment on the Nortel interest in his company. Nortel India’s managing director Ravi Chauhan would only say: “I am not in a position to comment on this.”
Separately, Nortel said it is targeting an expansion of $1.5 billion (Rs6,105 crore) in its operating margin by 2008, according to chief executive officer Mike Zafirovski.
Zafirovski’s comments on margin expansion were contained in a statement released in Mumbai ahead of a press conference.