Siemens and BenQ: partnership in mobile phones

German engineering giant &to=http:// ' target=_blank>Siemens and BenQ, an electronic company in China's Taiwan Province, have reached an agreement on a partnership in mobile phones.

The German engineering and technology giant's supervisory board is due to approve the deal Monday and make an announcement this week, Germany's Financial Times cited people familiar with the talks as saying.

The Munich-based company declined to comment on the Financial Times report, but said board members would be talking about the unit's future ahead of the next scheduled meeting in July. Shares of Siemens were up 1.8 percent to 61.35 euros (75.39 US dollars) in afternoon trading in Frankfurt.

BenQ, which was split off from electronics company Acer Inc. in 2001, is the biggest maker of mobile phones in Taiwan, China. It also makes phones for &to=http:// ' target=_blank>Motorola and NEC Corp. Analysts say that the deal would help BenQ boost sales in the European market, reports Xinhuanet.

Both Siemens and BenQ declined to comment on reports of their cooperation, as Siemens's supervisory board held a meeting about the unit on Monday.

The deal will come as a relief to Siemens after a months-long quest for a partner or buyer for its mobile-phones unit, which has been losing more than 1 billion euros a day.

Many investors had argued the consumer nature of the business made it ill-fitted to Siemens's already sprawling portfolio, which ranges from trams to turbines and hearing aids to outsourcing services.

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