Nortel CFO and controller placed on leave

Nortel has placed its chief financial officer and its controller on paid leaves of absence because of questions over the company's 2003 financial results.

Douglas Beatty, Nortel's CFO, and Michael Gollogly, the company's controller, are on leave pending completion of an independent review by a company audit committee. Last Wednesday, Nortel announced that it is likely to revise its previously unaudited results for the year ending Dec. 31.

A company spokeswoman wasn't immediately available to comment on the length of the independent review.

Nortel Monday announced the appointments of William Kerr as interim CFO and MaryAnne Pahapill as interim controller for both Nortel Networks Corp. and Nortel Networks Ltd., the company's principal operating subsidiary.

Kerr formerly worked for Nortel Networks from 1994 to 2001. He originally joined the company as controller and held senior positions in Nortel's finance organization, including senior vice president for finance. Pahapill joined Nortel Networks in 1999 and has held positions including assistant controller and most recently assistant treasurer.

The company's stock had fallen almost 10% to $5.79 in midday trading Monday on the New York Stock Exchange.

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