The Hindu : Business : Talks with Motorola in early stage: Dhoot

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Saturday, May 24, 2008
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Talks with Motorola in early stage: Dhoot

Special Correspondent

Venugopal N. Dhoot

NEW DELHI: Diversified business group Videocon is talking to U.S.-based Motorola for acquiring the latter’s mobile handset business. However, these talks are at ‘initial’ stages. It is also studying General Electric’s invitation for bid for its appliances division, which produces refrigerators, air-conditioners and ovens.

Revealing this, Venugopal Dhoot, Chairman and Managing Director of the Group, said, “The talks with Motorola are at very initial stage.” He, however, did not spell out a deadline for finalising the deal.

In the wake of Motorola’s plans to separate its mobile business from other operations, consumer electronics major Videocon had made a bid to acquire Motorola’s mobile handset business which is stated to be worth about $3.8 billion and account for 15 per cent market share globally.

Videocon has entered the race for Motorola’s handsets business since there is synergy between its upcoming telecom services operations and the handset business. It has got licences for 22 circles and will be launching the services in the circles soon through its subsidiary Datacom. As announced earlier, Videocon plans to start rolling out telecom network from mid-August with an eye to garnering about 10 per cent share in the Indian telecom market in five years.

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