Siemens sells mobile-phone unit

By: EBR - Posted: Wednesday, June 8, 2005

Siemens is to sell its loss-making mobile phone unit to Taiwanese technology firm BenQ.
No price was announced, but the German giant said the sale would cost it 350m euros ($429m; £235m) in 2005.
The deal sees Siemens take a 50m euro stake in BenQ, which will retain rights to the Siemens brand for five years and supply phones to the German firm.
The mobile unit has long been a key weakness for Siemens, and rumours of a sell-off have been rife for months.
The news sent Siemens shares up 2.4% as investors welcomed the continuation of the German firm's retreat from the consumer market.
Siemens said it hoped to complete the deal by the end of September.
The new firm is to be based in Munich, Siemens' own home town.

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