Fujitsu may purchase Siemens stake in FSC - PC Retail

Fujitsu may purchase Siemens stake in FSC

Deal is likely to retain FSC?s server business while PC division will be sold off
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Fujitsu is reported to have put in a bid for complete ownership of Fujitsu Siemens Computers, according to market analyst Bloomberg.

The bid, which is estimated at $500 million, is expected to cut costs for both companies. FSC operating profits accounted for just 1.6 per cent of total revenue in the last financial year.

German company Siemens is expected to sell as the reduction in expenses and additional revenue will allow it to concentrate in its plans for the energy, industry and health-care sectors.

“From Siemens's point of view they should be very happy,” commented Landesbank Baden-Wuerttemberg analyst Michael Busse. “In this environment they can be glad to get rid of it and get money for it.”

Fujitsu is expected to retain FSC’s server business, which would help the firm counter a four year slide in server sales, while the PC and laptop business is anticipated to be sold off, with speculation mounting that Lenovo will be the buyer.

An official announcement will be made next week.

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