BenQ Mobile goes swirling down the drain

BenQ Mobile, the Munich, Germany-based company formed by BenQ Corp. of Taiwan when it scored Siemens AG’s handset business in 2005, has no buyers and its assets will be liquidated, according to media reports.
Martin Prager, an insolvency administrator in charge of the matter, told reporters over the weekend that no potential buyers could be found and that the company’s assets will be sold. It was not immediately clear what assets were being discussed.
In June 2005, Siemens paid BenQ Corp. more than $300 million to take over its ailing handset business. In 2005, BenQ Corp. was the No. 6 handset original equipment manufacturer in the world and BenQ Mobile’s creation was part of an attempt to improve its global position. However, BenQ Mobile filed for insolvency protection in September, little more than a year after it was established.
Reports varied on the news’ impact on former BenQ Mobile workers, which range from 2,000 to 3,000 employees, according to different media sources. Some have found work at Siemens, which created a large employment and re-training fund to assist its former workers affected by BenQ Mobile’s misfortune. Prager did not comment on the fate of BenQ Mobile’s former employees.
A huge public outcry erupted in Germany last fall over BenQ Mobile’s insolvency filing and some accused Siemens of off-loading an unprofitable business, knowing its fortunes were doomed. Siemens executives denied the charges.