Nortel to Let Workers Swap Stock Options

Nortel Networks Corp., whose shares have fallen 77% in the last year, said Monday that it will let workers swap their stock options to make it easier to profit in the event the shares rise.

Nortel, the No. 1 maker of telecommunications equipment, said in a regulatory filing that at least 50% of employee options are “under water”--meaning the exercise price is higher than the recent share price.

The Brampton, Canada-based company will let employees trade in options granted after Nov. 12, 1999, for new options. Those options will be issued six months after the old version is canceled, and will be at prices lower than the 1999 options.

Nortel shares rose 59 cents to close at $14 on the New York Stock Exchange.