India Videocon in early talks with Motorola-report

MUMBAI, May 26 (Reuters) - India's Videocon Group is in initial talks about buying the handset business of Motorola Inc (MOT.N: Quote, Profile, Research) and is also looking at the possibility of bidding for General Electric's (GE.N: Quote, Profile, Research) appliances division, media reports said.

"The talks with Motorola are at a very initial stage," Videocon Industries' (VEDI.BO: Quote, Profile, Research) Chairman and Managing Director Venugopal Dhoot said at an industry seminar on Friday, the Press Trust of India reported.

In April, Dhoot had told Reuters that group flagship Videocon Industries, which has a market capitalisation of $2.1 billion according to Reuters data, would bid for the handset unit of Motorola if the U.S. firm decided to sell the business.

The U.S. firm has announced its plans to split into two publicly traded entities in 2009, separating its mobile phone unit from the rest of the business that makes television set-top boxes and network equipment.

The Press Trust also reported that Dhoot was looking at a possible bid for General Electric's (GE.N: Quote, Profile, Research) appliances division, having received a memorandum from GE which was now being studied.

"There is a non-disclosure agreement with the merchant banker and I cannot comment on that," Dhoot told Reuters on Monday when asked about a bid for the GE unit. He did not comment on the Motorola talks.

GE said in May that it may either sell or spin-off its century-old appliances unit, which generated $7.2 billion in revenue last year.

The consumer electronics and home appliances segment of Videocon Industries generated consolidated revenues of 111.9 billion rupees ($2.6 billion) for its fiscal year ended September 2007.

At 0638 GMT, shares in Videocon were down 2.3 percent at 377.80 rupees in a Mumbai market down 1 percent.

Last week, Dhoot said Videocon had been approached by Middle Eastern telecom firms Emirates Telecommunications Corp ETEL.AD and Qatar Telecom QTEL.QA for tie-ups in India. ($1=42.6 rupees) (Reporting by Janaki Krishnan; Editing by John Mair & Louise Heavens)