Motorola eyes Siemens' telecoms unit - report

FRANKFURT - Motorola Inc. is interested in Siemens' loss-making telecoms unit Com, the Frankfurter Allgemeine Sonntagszeitung reported.

In an advance copy of its Sunday edition, the paper said one option in the talks between Siemens and Motorola was the complete takeover of Siemens Com -- its biggest unit -- that had sales of 13 billion euros ($16 billion) and 55,000 employees.

A Siemens' spokesman declined to comment.

The paper also said Motorola had repeatedly shown interest in acquiring the profitable mobile network division, but Siemens' Chief Executive Klaus Kleinfeld wanted to sell the whole unit, including loss-making divisions.

Mobile networks is the most successful part of Siemens Com, which also makes equipment for fixed-line telecoms companies. Com's operating profit fell 13 percent to 323 million euros in the fiscal first quarter to end-December.

Without the sale of a stake in U.S. networks equipment maker Juniper, Com would have made a loss of 43 million euros in the quarter. Its sales rose 10 percent to 3.42 billion euros in the period.

The paper said Siemens' supervisory board could discuss the future of the Com unit at its meeting on April 24.

In February, Germany's Manager Magazin reported that Siemens wanted to break up its telecoms equipment unit Com and either sell parts of it or put them into partnerships.

The chief executive of Com had held talks with Finnish phone giant Nokia, among others, the magazine said.

Siemens has also been gradually withdrawing from high-tech, cyclical businesses such as semiconductors and electronic components to concentrate on more reliable earnings drivers such as power generation and healthcare technology.