(Adds details, background and stock prices)
By Ceyda Caglayan
ISTANBUL, April 10 Turkey's Vestel is
in talks to buy the television unit of Japan's Toshiba Corp
, a Vestel official said on Monday, a deal that could be
worth a few hundred million dollars and could expand the Turkish
firm's global presence.
"Vestel is in talks with Toshiba," the official said,
declining to be identified, when asked by Reuters about a report
it was in negotiations to the buy the unit.
Japan's Nikkei newspaper on Saturday said Vestel was a
potential bidder for the unit, which it said could fetch a few
hundred million dollars. Chinese companies are also among the
potential buyers, it said. Toshiba expects to complete the sale
by the end of next March, the Nikkei said.
Toshiba, a televisions-to-construction conglomerate, is
looking to sell off non-core assets. It expects to book a net
loss of about $9 billion for the year that ended in March, due
to a writedown related to cost overruns at its U.S. nuclear unit
Westinghouse that recently went bankrupt.
Vestel, a maker of electronics and home appliances, last
year signed a five-year agreement with Toshiba, giving it the
right to produce and sell televisions under the Toshiba brand in
Vestel accounts for 85 percent of the televisions and 29
percent of the white goods exported from Turkey.
Shares of Vestel were up 3.2 percent at 7.04 lira at 0725
GMT in Istanbul, while Toshiba shares were up 6.3 percent at
229.7 yen in Tokyo.
(Reporting by David Dolan; Editing by Daren Butler)