NEC intends to sell part of the European PC business to fade out of the European PC Market

Japan NEC said on Wednesday that the company is currently on sale of part of its business and the European PC talks, which may eventually lead to its exit from the European domestic PC market. The company declined to disclose further information, including the potential buyers of the company's name and its global subsidiary Packard Bell BV possible price.

On Wednesday, the "Japanese economic news" reported that the majority of the shares, NEC will sell its subsidiary Packard Bell BV currently, NEC is working with eMachines company co-founder Lap Shun Hui on the relevant matters relating to the sale negotiations. EMachines company since the acquisition of Gateway company, specializing in the production of low-cost PC.

The newspaper also said that the majority of shares sold Packard Bell BV price has not yet finalized, is estimated at 10 billion yen ($87 million) below. Packard Bell BV has been losing money over the past few years, with annual sales of around 130 billion yen.

Market research company, Goldman Sachs believes that the sale of NEC PC business in Europe is a positive step. Industry analyst Ikuo Matsuhashi said: NEC in the current business there is little opportunity to achieve profitability."

NEC is in the top position in the Japanese market, its market share is as high as 20%, but NEC's overseas business has not been much improvement. Market research firm Gartner statistics show that in 2005, NEC in the global PC market, the market share of 2.8%, is the world's seventh largest PC manufacturer.

For the fiscal year ended March 31st, NEC's PC business sales of 680 billion yen, operating losses of up to $7 billion. NEC spokesman said, NEC is currently by another local company to carry out PC and server business in Europe, regardless of the sale of Packard Bell company BV company the results of the negotiations, the company of the two businesses will operate normally.

In response to the news, NEC's stock price rose, in the day of the transaction, the company's share price rose 0.86 percentage points to close at 586 yen.