Alcatel quits Chinese television-mobile venture

17th May 2005, Comments 0 comments

PARIS, May 17 (AFP) - French telecommunications equipment manufacturer Alcatel is to withdraw from a mobile telephone and television venture called TAMP with Chinese company TCL, the Chinese company said on Tuesday.

PARIS, May 17 (AFP) - French telecommunications equipment manufacturer Alcatel is to withdraw from a mobile telephone and television venture called TAMP with Chinese company TCL, the Chinese company said on Tuesday.  

The venture, the leading world manufacturer of television sets, was launched in August 2004, at a cost to Alcatel of EUR 45 million (USD 56.7 million) and to TCL of EUR 55 million.  

TCL would take over the 45-percent interest held by Alcatel, paying in TCL Communications shares worth 63.34 million Hong Kong dollars (EUR 6 million), the statement said.  

Within 18 months, Alcatel would take over 360 staff working on research and development in Europe.  

On April 18, TCL Communication Technology reported a net loss of 223.54 million Hong Kong dollars (USD 28.66 million) for 2004 after a profit of 784.16 million Hong Kong dollars in 2003 owing to a loss and a fall of sales by TAMP.  

In December 2004, TCL president Li Dongsheng said that the venture was expected to sell more than 20 million new-generation portable telephones in 2005.  

The price of shares in Alcatel firmed by 0.58 percent to EUR 8.71 in initial trading, in response to the announcement.

© AFP

Subject: French News

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