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BenQ Mobile To Be Sold Off As Last-Ditch Salvation Effort Fails

Feb 26, 2007 (08:02 AM EST)

Read the Original Article at http://www.informationweek.com/news/showArticle.jhtml?articleID=197008744


Efforts to save the German handset business of Taiwan's BenQ Corp. have failed, and a bankruptcy administrator in Germany said the company's business will be divided and sold, according to German media reports.

The company had taken over the struggling mobile phone unit at Siemens several months ago but failed to save the operation. "There is no longer a realistic chance of it being sold as a whole," said insolvency administrator Martin Prager.

Some 3,000 BenQ employees are slated to lose their jobs. More than 500 have found new jobs, and many are expected to be hired at Siemens.

The failed mobile company's physical properties, including office equipment, computers, furniture, and even plants, will be sold on eBay, Reuters news service reported. Pluta.net, a German company that specializes in asset sales, is handling the transactions.

Profits from the office equipment sale will go to BenQ's creditors, Reuters said, including chipmaker Infineon and credit-insurance company Euler Hermes.