Nortel Networks, the Canadian telecommunications equipment company operating under Chapter 11 bankruptcy protection, confirmed on Thursday that it is seeking a buyer for its controlling stake in LG-Nortel, the company’s South Korean joint venture with LG Electronics.

Nortel owns a 50 per cent stake plus one share in the profitable joint venture which was formed in late 2005. As previously reported, Nortel has appointed Goldman Sachs to find possible purchasers for its stake which could be worth as much as $1bn.