Videocon tells Motorola of its interest in handset unit

Videocon tells Motorola of its interest in handset unit
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First Published: Mon, Apr 07 2008. 11 53 PM IST
Updated: Mon, Apr 07 2008. 11 53 PM IST
Bangalore: Videocon Group, India’s largest consumer electronics maker, has sent Motorola Inc. a letter stating its interest in acquiring the US company’s mobile phone operations, chairman Venugopal Dhoot said.
Videocon hired UBS AG to advise it on the bid, Dhoot said in a telephone interview on Monday. He declined to provide more details.
Dhoot last week said Videocon, which plans to start wireless operations in India this year, may offer to buy Motorola’s unprofitable mobile phone business. Motorola’s handset unit is worth at least $3.8 billion (Rs15,162 crore), according to Merrill Lynch and Co. estimates.
The sale may take a year to complete because it requires US regulatory approval, he said, according to an Economic Times report on 5 April.
Motorola had earlier bowed to investors’ pressure and said it would split its troubled cellphone business and form two separate public companies.
The company is also laying off employees as part of a cost- cutting plan. BLOOMBERG
AP contributed to this story.
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First Published: Mon, Apr 07 2008. 11 53 PM IST