Seoul -- LG Electronics and Nortel will form a joint venture to offer telecom and networking solutions in the wireline, optical, wireless and enterprise areas for South Korean customers.

The joint venture will be tentatively named LG-Nortel Co. Ltd. It will combine the telecommunication infrastructure business of LG Electronics and the distribution and service business of Nortel in South Korea.

Nortel will own 50% plus one share in the joint venture, and will contribute its South Korean distribution and services business and pay US$145 million and other non-monetary consideration.

The companies will likely nominate J. R. Lee from LG Electronics to be CEO and Paul House from Nortel to be COO.

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