Nortel plays down restructuring speculation after Lehman Brothers report

SAN FRANCISCO (AFX) - Nortel Networks Corp played down speculation that it is poised to embark on a major restructuring of its business, saying while it may "move some specific product lines around," there are no plans for any spin-offs.	    Speaking to reporters on the sidelines of the JP Morgan H&Q technology investor conference here, Brian McFadden, president of the group's metropolitan optical division, said: "In this business, we move around things all the time."	    "The only restructuring I know of is that we have re-aligned some product portfolios."	    Asked if the telecommunications group is looking to spin off any of its businesses, McFadden replied: "Not that I know of."	    Talk of a major restructuring at the firm was sparked by a report by Lehman Brothers analyst Tim Luke, who predicted that Nortel will spin off its underperforming digital subscriber line equipment, cable gear and phone switchboard businesses.	    Luke also said Nortel would make Frank Plastina its new chief operating chief to replace Clarence Chandran, who is on medical leave.	    McFadden also dismissed talk over the COO role.	    "We already have someone in that position," he said.	    In his note yesterday, Luke said Nortel is planning the moves in an attempt to turn investors' focus to its faster-growing internet-based businesses from the old phone gear that accounts for a substantial part of its sales. 

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