Videocon Emerges As Buyer For Motorola's Handset Division Emerges; In Early Talks
Monday, May 26, 2008; 5:00 PM
Videocon said today it was in early talks to buy Motorola's ( NYSE: MOT) handset division, according to the Business Standard. Videocon, a consumer electronics company, said it made a bid to acquire Motorola's mobile handset business, but declined to give a deadline for the deal and said the talks are at a very early stage. The article quoted analysts as saying that the business, which accounts for about 15 percent marketshare globally, is likely worth around $3.8 billion.
The pending purchase is interesting because it appears Videocon is also rolling out a wireless network starting in August in India, where it owns spectrum. Carl Icahn has been pressuring Motorola to spin off the division and was prepared for a proxy fight before Motorola agreed. The sale was expected to take awhile, especially since it seemed like the other major handset makers, such as Nokia ( NYSE: NOK), Samsung and LG (SEO: 066570) appeared uninterested.
Indian Consumer Electronics Maker Videocon Will Bid For Motorola's Handset Business Samsung Won't Buy Motorola Handset Unit Either LG Doesn't Want Motorola's Handset Business Either Sony Ericsson Not Interested In Motorola Handset Division
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