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From: Reuters
Published March 12, 2008 08:33 AM

Motorola unit interests equipment makers: report

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NEW YORK (Reuters) - Motorola Inc <MOT.N> has had interest in its handset unit from foreign telecom equipment makers, according to mergermarket.com, a Financial Times Web site.

The report cited a source and banker as saying leading Asian telecommunications equipment and device makers are interested in discussing some form of partnership with the Motorola unit after initially rejecting a deal.

Motorola said in January it would explore a structural realignment of its businesses, with one option including the possible separation of its mobile devices unit.

Motorola officials were not immediately available for comment.

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Chinese mobile phone maker ZTE Corp <0763.HK> told Reuters at a mobile trade fair in Barcelona last month it was in talks with Motorola about wider cooperation.

Asked whether ZTE would consider a merger with Motorola's phone unit Xiong Hui, a marketing vice president for handsets, would not comment, but said ZTE was in talks about deepening its relationship with Motorola.

"We've been keeping in touch with Motorola on a wider cooperation," Hui said.

(Additional reporting by Tarmo Virki; Editing by David Cowell)

(Reporting by Yinka Adegoke; editing by Rory Channing)

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