FRANKFURT, Germany — Siemens AG, Germany's largest industrial and electronics company, said late Tuesday it reached a deal with administrators in the case of BenQ Mobile's insolvency settlement.
Siemens said in a short statement it would pay a gross sum to BenQ Mobile of euro300 million ($381 million) in relation to the insolvency of the BenQ business in 2006.
Siemens had sold its ailing handset telephone business to Taiwan-based BenQ Corp. just a year earlier, expecting it to be brought back to profitability. However, BenQ couldn't achieve a turnaround, and posted recurring losses. BenQ then shut the doors on its German business in early 2007, which affected thousands of jobs.
Munich-based Siemens, which makes everything from trains to medical equipment said the net payment to BenQ announced Tuesday would be closer to euro255 million ($324 million) after taking into account Siemens' creditor claims.
Siemens said it had made a sufficient provision for the expected charge, and that it would not have any negative impact on operating results for the current 2009 fiscal year.
Shares of Siemens were 3 percent higher at euro48 ($61) in late Frankfurt trading.
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