In its first ever official confirmation, Canadian telecom gear manufacturer, Nortel said that it is indeed on the lookout for a potential buyer for its stake in JV with LG. The company has appointed Goldman Sachs as financial advisor for the deal.

The JV formed in 2005 started off as a good profitable business unit until last year when the operating margins started tumbling. The two partner hold equal stake in the company.

”LG-Nortel is a successful business with an accomplished leadership team, a culture of innovation, a dedicated employee base and a drive to succeed,” said Mike Zafirovski, Nortel’s chief executive. ”As we work to evaluate the ultimate path forward for all of our businesses, this decision will allow LG-Nortel to embark on the next phase of its journey and realize its full potential.”

”This proposed divestiture represents the best path forward for LG-Nortel, its customers and employees,” said Peter MacKinnon, LG-Nortel’s general manager. ”LG-Nortel is a strong, independent, technologically astute and commercially savvy organization. With a competitive portfolio of wireless, wireline and enterprise solutions, LG-Nortel is a market leader in Korea and select international markets. Our number one priority is the continued success of LG-Nortel and our customers.”

Nortel added that it will now seek approval from the Ontario Superior Court for the stake sale.

The JV offers wide range of products and services related to business communications, phone & accessories, wireless infrastructure and optical & wireline infrastructure.