Tue, Oct 10, 2006 - Page 12 News List

Siemens says BenQ has to assume guarantee claims

BLOOMBERG

Siemens AG, which last year paid BenQ Corp (明基) to take its mobile phone division, said the Taiwanese company has to pay for guarantee claims after the unit filed for insolvency protection last month.

"BenQ took over our mobile phone unit last year and they are obliged to take care of guarantee claims," spokesman Andreas Schwab said in a telephone interview yesterday.

German magazine Wirtschafts-woche reported on Sunday that Siemens AG would have to pay an additional sum of at least 100 million euros (US$126 million) to meet potential guarantee claims from customers which own a BenQ-Siemens mobile phone.

BenQ on Sept. 28 decided to discontinue funding the unprofitable German unit less than a year after taking it over from Siemens because of mounting losses.

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