LG rejects interest in Siemens mobile biz

Not for sale apparently

By Tim Richardson • Get more from this author

Posted in Financial News, 21st January 2005 10:44 GMT

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LG Electronics has ruled itself out of the running to acquire Siemens' loss-making mobile phone business.

Reports circulating yesterday said that LG Electronics was in the frame to buy Siemens' handset business if negotiations ran smoothly.

But newswire AFP today quotes an LG spokesman who has denied that the South Korean electronics giant has even held talks with Siemens.

He said: "We have no interest in acquiring the Siemens' handset unit."

That ties in with another story which pours cold water on speculation that the handset business is up for sale.

German-language newspaper Die Welt today quoted the head of Siemens' works council as saying that the business is not up for sale.

That's despite chief executive Heinrich von Pierer saying earlier: "Either the situation has to be fixed or we have to find a partner for co-operation. We have to fix, close or sell."

LG has now joined NEC and Chinese manufacturer Ningbo Bird in the list of firms who deny any interest in acquiring the business. A decision about the future of Siemens' mobile phone operation is expected at the group's annual meeting on 27 January. ®