Alcatel exits handset business

18 May 2005

The French equipment supplier Alcatel has withdrawn from its Chinese mobile handset joint venture TAMP. The venture with Chinese manufacturer TCL was formed in August last year and managed to ship 2.5 million phones between its creation and the end of 2004, but made a net loss of HKD258 million (USD33 million) over the same period. Alcatel is transferring its 45% stake in TAMP to TCL in return for a 4.8% stake in the Chinese company’s Hong Kong-listed mobile handset business TCL Communications. The French vendor initially invested EUR45 million to set up TAMP but is making a loss on the deal, with its TSL Communications stake valued at EUR6.4 million.