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Sunday, 12 October 2008 00:15 UK Bengaluru, India


 

Sony Ericsson may acquire Spice mobile

Discussion on collaboration shifts to acquisition talks

By Harsha Pramod @ Friday, July 11, 2008 12:50 PM

 
 Sony Ericsson plans to acquire Spice Mobile, reports the Economic Times.

Spice Mobile, owned by the BK Modi group, is looking at a deal worth Rs 7 billion ($163.2 million) at Rs 80 ($1.87) to 100 ($2.33) per share. BK Modi directly owns nearly 64 per cent of Spice Mobile.

Spice Mobile shares hve fallen from Rs 35.9 ($.84) to Rs 22.7 ($.52) in the last 40 days. Although Spice was exploring an extensive partnership with Sony Ericsson, discussions moved on to plans for an acquisition. The deal is yet to be finalised.

In June, Modi signed a deal with its rival, Idea Cellular, for a 40.8 per cent stake, valued more than Rs 27 billion ($630.2 million). X

 
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