Siemens Fails to Find Buyer for Enterprise Networks Division

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Siemens Fails to Find Buyer for Enterprise Networks Division

5:15 am on November 23, 2006 | Category: Business, Corporate

German electronics manufacturer, Siemens, is having not shortage of trouble finding a buyer for its Enterprise Networks division, a problem which many observers blame on the collapse of BenQ Mobile.

FT Deutschland reports that Siemens is throwing in the towel on this sale, after a consortium of financial investors from Permira and Apollo Management, withdrew their bid after months of negotiations.

The German company sold its cell phone business to Taiwan-based BenQ in 2005, but the division performed abysmally after the deal, and filed for insolvency after the BenQ cut off further financing.

Siemens’ perceived lack of social responsibility in the BenQ deal, along with a related scandal over bribery and corruption, seems to have rendered the company’s assets virtually unsalable for the time being.