Monday, 14 July 2008

Sony Ericsson to Spice things up

Sony Ericsson, the world’s third-largest handset manufacturer, is reportedly interested in acquiring Spice Mobile, the handset company of the Modi group that sells mobile phones under the Spice brand.

According to The Economic Times, Spice's founding BK Modi Group, which owns 64 percent in handset maker Spice Mobile, had asked for 80-100 rupees per share, which would value the company at up to USD 174 million.

However, it is not clear if Sony Ericsson will accept this price. The deal is not finalized yet. If the deal goes through, this will mark yet another exit of the BK Modi group from the telecom sector.

The development if it comes into reality will result in Sony Ericsson attaining second position in the Indian handset market which is presently held by Samsung. Last month, BK Modi sold his stake in mobile services firm Spice Communications to larger rival Idea Cellular.