Videocon Emerges As Buyer For Motorola’s Handset Division; In Early Talks
By Tricia Duryee - Fri 23 May 2008 10:26 AM PST
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.
Posted in: Companies, Motorola, Mergers & Acquisitions, Mobile
