Kyocera in talks to buy Sanyo cellular unit: sources

Sanyo now expects to sell about 11 million units of mobile phones in the current business year to March 2008, down from its initial estimates of 12.5-12.6 million.

The sale of the mobile phone unit would not put an end to Sanyo's exposure to the mobile phone market since its lithium-ion batteries are used in four of every 10 cell phones in the world.

Shares in Sanyo, which told Reuters in August its mobile phone business will likely turn profitable in the current quarter to the end of September, closed up 5.7 percent at 185 yen, while Kyocera rose 4.2 percent to 10,790 yen.

The Tokyo stock market's electrical machinery index .IELEC.T was up 1.81 percent.

($1=114.98 Yen)