By John Oates, 9 September 1998 17:42
NEWS Acer has backed out of its agreement to buy Siemens' PC plant in Augsburg, Germany. A memorandum of understanding had been signed at the end of April for the joint venture. Siemens hoped the deal would rid it of the expense of the plant as well as giving it access to Asian markets. A spokeswoman for Siemens said: "We have stopped negotiations by mutual consent because of irreconcilable differences over financing." She added that the plant was "not exactly for sale but if someone approached us we would be open to the idea". Acer said in a statement that it wants to focus its attention on its beleaguered chip business and blamed the Asian crisis for the decision. The fall out is a major blow to Siemens which is now the last European computer manufacturer not to outsource its manufacturing.
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