Tom Sweeney

It's a coming of age tale….

Archive for January 28th, 2010

LG-Nortel launches joint venture for voice and data network

Posted by sweens on January 28, 2010

Published on January 28th, 2010
Canadian Press

The joint venture formed by Nortel Networks Corp. and LG Electronics of South Korea plans to tackle the U.S. business equipment market by mid-February with a new Taiwanese partner.

LG-Nortel said Thursday that it will pair with Accton Group to roll out a voice and data network for businesses operating under the name Edgecore Networks Inc.

LG-Nortel will hold a 60 per cent share in Edgecore while Accton will have the remaining 40 per cent.

The two companies will split responsibilities such as research and development, manufacturing, and marketing.

“This partnership will provide significant new opportunities to reinforce our brand, increasing our global competitiveness and helping our customers embrace the future opportunities and challenges of the converged communications market,” said LG-Nortel chief executive Jae Ryung Lee in a release.

Nortel holds a majority stake in the LG-Nortel joint venture, one of the few remaining pieces of the company that hasn’t been sold.

Toronto-based Nortel, formerly a giant of the global telecom equipment industry, filed for bankruptcy protection last year and has since been auctioning off its assets in an attempt to pay back debtholders.

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Corel privatization complete

Posted by sweens on January 28, 2010

Published on January 28th, 2010
Krystle Chow

The last step for the privatization of Ottawa-based Corel Corp. has been completed.

Corel shareholders earlier this week approved a stock consolidation that was part of the going-private deal with Corel Holdings LP, a limited partnership controlled by major shareholder Vector Capital.

Stakeholders who were not part of Corel Holdings and its affiliates will receive US$4 in cash for each pre-consolidation share held, the company said in a statement.

Shares of Corel, maker of popular software products such as PaintShop Pro and WordPerfect, have now been delisted from the Nasdaq and the Toronto Stock Exchange. The stock was priced at $3.33 on the TSX at its last trade on Jan. 27.

This is the second time Vector Capital has taken Corel private. Vector – a San Francisco-based private equity firm that owned about 68.3 per cent of Corel’s shares before this latest privatization – first bought out Corel in 2003, and in 2006 the software company ventured back into the public markets, with its shares debuting at US$16 at the time.

Vector attempted to buy Corel again in March 2008, offering $11 in a bid criticized by some analysts at the time as being too low, but that deal fell through in August of that year.

Corel continued to seek buyers to recapitalize itself, and announced shortly after the collapse of the Vector bid that it had identified a third-party buyer. However, the buyout talks sputtered a few months later, and Vector announced another bid in 2009, this time for only US$3.50.

The private equity firm then sweetened its bid to $4 in November.

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Posted by sweens on January 28, 2010

I would like to take this blog today and turn it in to more of a question then a rant.  I am wondering if many companies or professional services firms take inequity (differences in pay) into consideration when they look at staffing their projects.  As it is likely in any environment, when multiple people get together they are bound to talk and will likely expose information on their current consulting rates or salary.  As I have blogged before, if these rates are not indicative of the skill set for each person, you can have a serious problem. 

Often when it comes to staffing a large project (large testing environment, call centre, etc) an organization will put out a requirement calling for multiple resources.  As will always be the case, all the resources chosen to staff this project will come in with a varied skill set.  If resources are placed by different firms the rates can vary as each firm can negotiate for a different margin.  But this difference in price can cause problems down the road of people find out the team members are not being paid the same.

This is the same for employees who have the same responsibilities or skill set.  I am a recruiter for example, but I am not the only recruiter.  If I make more then someone else who does relatively the same thing as I do we should be making the same salary?  I know that I would be upset if someone was making more then I was. 

This is not to say that everyone is equal, and to suggest such a thing is simply incorrect.  Every organization is going to have a mix of talent.  Perhaps my suggest is rather that any organization needs to be able to justify or demonstrate why they are paying one person more then the other one in case someone brings it up.

It always helps to have something down so you could explain if need be why you feel such a person is worth the higher price take.  After all, this is a headache no one wants to deal with…

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