Siemens, BenQ to set up handset venture

FRANKFURT: German engineering conglomerate Siemens is to set up a joint venture for its loss-making mobile handsets business with Taiwanese technology group BenQ, the Financial Times reported.

Siemens' supervisory board is to hold a meeting on the ailing unit on Monday, Siemens said at the weekend, and a source familiar with the situation said there could be news on the unit's future within days.

The Frankfurter Allgemeine Sonntagszeitung reported on Sunday that Siemens would announce a joint venture with an Asian mobile phone maker on Tuesday. It did not name any company.

Siemens declined to comment on the newspaper reports. BenQ was not immediately available for comment.

The German company has been saying since late last year it could sell or partner the mobile-phones unit.

Names mentioned of possible partners or buyers have included BenQ, Ningbo Bird -- with whom Siemens already cooperates in China -- and Korea's LG Electronics.

(Additional reporting by Doug Young in Hong Kong)