Ericsson raises stake in Korea JV
STOCKHOLM (Reuters) - Ericsson (ERICb.ST), the world's top mobile network equipment maker, has increased its stake in joint venture LG-Ericsson as it looks to consolidate its position in the fast-growing South Korean market.
Ericsson (ERICb.ST) bought bankrupt Nortel Networks' controlling stake in the venture with LG Electronics (066570.KS) for $242 million in 2010 to gain a foothold in Korea.
The Swedish company said on Thursday it now held a 75 percent stake in LG Ericsson, up from the 50 percent plus one share it had previously.
LG-Ericsson -- a supplier to major Korean telecom operators such as KT Corp (030200.KS), LG Telecom and SK Telecom (017670.KS) -- was set up in 2005.
Cash-rich Ericsson, which last year sold its stake in its mobile phone joint venture Sony Ericsson to Sony (6758.T) for just over 1 billion euros ($1.32 billion), gave no financial details of the deal.
Ericsson has another joint venture company, struggling chip maker ST-Ericsson.
Analysts believe Ericsson will probably sell its stake in ST-Ericsson after the chip-maker returns to profitability, although Ericsson has said it is a long-term, strategic holding.
(Editing by Mike Nesbit)
- U.S.'s Kerry expresses regret to India over diplomat case |
- Washington, DC city council raises minimum wage to $11.50/hr in 2016
- Mega Millions winners in Georgia, California to split $648 million |
- China confirms near miss with U.S. ship in South China Sea
- Fed cuts bond buying in first step away from historic stimulus |
During Soviet times, Sochi gained a reputation for tolerance but the city's once vibrant gay scene has been shrinking as Russia prepares to host the 2014 Winter Games. Slideshow