Taiwan Acer: Not Interested In Buying Siemens Handset Operations

TAIPEI -(Dow Jones)- Taiwan's Acer Inc. (2353.TW) Monday denied reports it is interested in acquiring the mobile handset division of Germany's Siemens AG (SI), saying it has "never" indicated such an interest before.

"We have never been in talks with Siemens to seek any partnership or merger and acquisition. Such a possibility is completely ruled out," said Henry Wang, senior director at Acer.

German daily Sueddeutsche Zeitung reported in its Saturday edition that talks between the two companies are at an advanced stage.

Wang said there are no similarities between Acer and Siemens' handset unit.

For years, Acer has predominantly been involved in computer operations. In 2000, the company underwent a major restructuring, spinning off its manufacturing operations to focus solely on marketing and distributing its personal computers and other gadgets.

Siemens has struggled to come up with a strategy for its unprofitable handset business. In the fourth quarter of 2004, it lost its number four spot in the global mobile phone market to LG Electronics Inc. (066570.SE), according to figures from research firm Gartner Inc. (IT).

Management has said options include a sale, joint venture, further restructuring or closure.

The division was hit last year by a software problem in a new range of handsets, and Siemens hasn't been as quick as competitors to produce handsets for the faster third-generation wireless services being rolled out by mobile operators across Europe.

Siemens' handset division posted a EUR143 million loss in the first quarter that ended Dec. 31, after a profit in the year-earlier quarter.

-By Julie Wang, Dow Jones Newswires; 8862-2502-2557; julie.wang@dowjones.com

-Edited by Sharon Buan

(END) Dow Jones Newswires"

Posted to the site on 25th April 2005