Nortel Networks loses their number 2 executive

Nortel Networks have reported that their number 2 executive, chief operating officer and president Gary Daichendt has decided to leave the company. He had joined Nortel just three months back and the reason behind this step is suggested to be clashes between him and the chief executive officer Bill Owens.

This is bad news for the company, which just recently emerged from an accounting malaise that has dragged on for nearly two years. The share market is seeing Nortel being dumped by the investors as its share closed 9 percent, or 32 Canadian cents, lower at C$3.23 on the Toronto Stock Exchange, and down 24 cents to $2.57 in New York.

It is rare for companies to come out in the open about these kinds of issues. However, Nortel has clarified in open that their were difference in views between Daichendt and Owens. However, specifics have not been revealed by the company. Owens said in a statement: “It has become apparent to Gary and me … that we have divergent management styles and our business views differ.”

The market seems to be surprised by these events considering their were no previous signs of disagreement between the top two executives in the Nortel Networks. In fact, analysts believed that the company was grooming Daichendt as a replacement for Owens in the coming years.

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