Exeunt mobiles

7 June 2005 By Marianne Brun-Rovet

The German conglomerate will take a much lower than expected E350m charge for Taiwan s BenQ to take the lossmaking unit off its hands. That s better than running it at a loss or closing it down. And it leaves BenQ the gruelling task of dealing with Siemens German workforce.

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Siemens is to sell its lossmaking mobile handset business to Taiwan's BenQ in a deal that will cost the German conglomerate E350m in pretax charges.

BenQ, a spinoff of computer maker Acer, will take over Siemens' plants in Germany and Brazil and will have the use of its plant in China. It will also have the rights to the Siemens brand and name for five years.

Siemens will also invest E50m in BenQ shares, representing approximately 2.5% of its share capital. The group said BenQ would take workers in Siemens' mobile unit under their current terms of employment for a year.

Siemens' cordless phone and broadband divisions, which were carved out of the group at the same time as the mobile handset unit, will not be part of the deal.

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