Perhaps people are looking too hard for signs that Nortel Networks Corp. is about to become acquisitive, but when the company this week announced the abrupt departure of its enterprise president, Steve Slattery, at least one analyst took it as a sign that the new leader would bring a new, more M&A-focused strategy.

CIBC World Markets analyst Ittai Kidron notes in a recent research report that under Slattery's leadership, Nortel's enterprise division, one of the company's key areas of focus these days, has enjoyed strong growth. During the most recent quarter ended in June, that unit's revenues were up 23% year-over-year to $590 million, although Kidron noted that its profitability, or lack thereof, has not been disclosed.

"In our opinion," he says, "the enterprise unit has material gaps in its product portfolio and, based on our recent calls with Mr. Slattery, it was our impression that acquisitions are less likely and internal development more likely."

"With a new cost-focused chief, we believe this approach could be revisited," Kidron says.

Despite a flurry of M&A activity among many of Nortel's rivals, the company has not made an acquisition since it bought Tasman Networks Inc. for $99.5 million in late 2005. - Andrea Orr