Hedge fund bets bigger on Nortel

Date: Thursday, March 22, 2007
Author: Bert Hill, Ottawa Citizen

Nortel Networks' biggest single shareholder, Brandes Investment Partners, a hedge fund based in San Diego, California, increased its ownership to 46.8 million shares last year — or 10.8 per cent of all stock.

Brandes has been the largest single shareholder in Nortel for several years and has a big stake in several other companies in the business.

Brandes, according to Nortel's recent financial filings, doubled its stake during the year from 5.4 per cent — a sign it is betting that Nortel might be bought or play in a role in the sweeping industry consolidation.

The $115-billion U.S. fund also has stakes in companies such as General Motors (nine per cent), Ford (nine per cent), Alcatel-Lucent (five per cent), Xerox (five per cent), and Quebecor (13 per cent).