Indian Stock Market

Consumer electronics major Videocon is aiming another big global buy. The Indian company, promoted by the Dhoot family, is likely to buy out the handset business of US based Motorola Inc. The talks are at initial stages, though. Motorola’s handset business has a market share of 15 per cent globally and is valued at $ 3.8 billion. The business has been suffering losses and earlier this year Motorola decided to separate its handset business from its profitable broadband and mobility solutions business. Videocon is venturing into telecom services business and believes that acquiring Motorola’s handset business will synergise its upcoming business. Videocon has already got license for 22 circles which have a pan-India presence. It has received spectrum in three circles circles and is waiting for the rest. Videocon’s subsidiary Datacom will be launching its telecom services around mid-August and plans to capture 10% market share in five years. Videocon had acquired French group Thompsons television tube business for $ 300 million in 2005 and Indian appliance unit of Sweden’s Electrolux for $ 74 million. It had unsuccessfully tried to acquire Daewoo Electronics too in the past.
Source: VCCIRCLE