Despite investor caution in the telecommunications sector, Nortel has raised $1.49 billion, from a stock and securities offering, according to sources.
Nortel planned to raise about $800 million but boosted the offerings by 86 per cent, the sources said, though its shares have sunk to just US$1.41, a 19-year low, and have fallen 89 per cent in the last year.
The company employs over 2,000 people at a number of locations on both sides of the border in Ireland.
The shares are down 32 percent since Nortel set plans for the offerings on Monday, in part because the offerings dilute existing Nortel shares, which some investors sold "short."
"The only thing worse than diluting your shareholders and showing that you're in a bit of a desperation financing mode is to not do it - and run out of money," said Mr Glenn Reynolds.
Nortel said on Monday it planned to use proceeds from the offerings for general corporate purposes.
The fortunes of Nortel, which lost $27.3 billion in 2001 and whose credit ratings later fell to "junk" status, are tied to a rebound in demand for phone, wireless and Internet network equipment that analysts don't expect before 2003 or 2004.