After exiting its cellular phone service biz under Spice Communications, BK Modi is considering exiting Spice Mobile, its mobile phone manufacturing business.
It is reported that world’s third-largest handset manufacturer Sony Ericsson may buy out a majority stake in Spice Mobile. The issue remains only of valuation as BK Modi is demanding Rs.80-100 per share much higher than current market price of Rs.25.
If Sony Ericsson materialises the deal than it may again become the second largest handset player in India just behind Nokia. It would also get in hand a good portfolio of cheap handsets and dual mode CDMA+GSM handsets, much suitable for Indian markets.
It make sense for Spice Mobile also to exist this business as it is a very capital intensive and competitive biz with large multinationals operating in it. So, it would not be very feasible for a local player to carry on the operations profitably. via
Find this article at:
http://www.labnol.org/india/corporate/sony-ericsson-plans-to-buy-spice-mobile-overtake-samsung-mobile/3862/
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email: amit@labnol.org
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