Siemens is talking to
Motorola about a possible
sale of its Siemens Communications telecoms equipment arm, according to an
article in German business newspaper Frankfurter Allgemeine over the
Easter weekend.
The Communications unit is one of Siemens' six divisions, and accounts for
about €13bn of the firm's €75bn total annual sales. The group, which makes
equipment for landline and mobile providers, is a notorious loss maker.
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Citing anonymous sources, the newspaper claimed that the company is in
negotiations with Motorola.
The world's second largest maker of mobile phones would be primarily
interested in the mobile part of the business which is profitable and growing.
But the report stated that Siemens does not want to be left with its wired
'ugly duckling' which is complicating the negotiations.
A sale of Siemens Communications would end the German industrial
conglomerate's long involvement in the telecoms business.
Siemens sold its mobile phone-making business to
BenQ last year, paying
the Taiwanese company €250m to rid itself of the business and contractual
liabilities.
Siemens was founded in 1847 by Werner von Siemens after he invented a
telegraph machine that transmitted letters instead of Morse code.
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