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Sanyo denies it has decided to sell cell phone unit

TOKYO: Troubled Japanese firm Sanyo Electric Co. denied Saturday that it had decided to sell its mobile phone manufacturing unit.

“We are conducting various reviews in order to strengthen our mobile phone handset operation, but we have not made any decision to sell the operation,” the firm said in a brief statement.

Media reports earlier Saturday said the company had already begun talks with domestic electronics firms about the disposal of the business unit.

Sanyo had approached rivals and potential buyers such as Kyocera and Sharp, the Yomiuri Shimbun newspaper said Saturday, and could decide this month to sell the mobile phone unit. Japan Broadcasting Corporation (NHK) said the firm had already decided to sell the unit.

“Sanyo Electric has decided to sell the mobile phone unit, as it has been difficult to turn it around to become profitable,” NHK’s report said.

The firm had begun discussions about the price with potential buyers, NHK said, adding that an agreement may be reached by the end of this year.

Sanyo posted an annual net loss in each of the last three years, stoking rumours that it wanted to sell its unprofitable mobile phone business.

The speculation suggested the firm preferred to focus on more profitable units, such as rechargeable batteries. afp

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