Videocon Group interested in taking over Motorola’s cellphone dept

Written by Meraj Chhaya on April 3, 2008 – 2:52 pm

Motorola’s spinoff that MH spoke about in a recent post, separated its handset business from the rest of the company. Videocon Group from Aurangabad, India has become interested in acquiring the handset department at Motorola.

Chairman Venugopal Dhoot has confirmed this, but declined to comment in the financial terms as it has not been decided yet. On the Motorola side, Mary Lamb, who is a spokesperson for Motorola in Hong Kong, declined to comment on Videocon’s bid for Motorola.

Videocon has had a rejected bid for South Korea’s Daewoo Electronics, where it struggled to raise the $700 million required to propose. The bid for Motorola should be far more challenging as Videocon is valued at $2-$2.5 billion, while Motorola is valued at $3.8 billion. Last year the Videocon Group has a turnover of $4.7 billion.

I expect more comments from our financial advisor MH later during the day.

Picture: SysPro
Source: Cellular News