British TV decoder maker Pace Plc confirmed on Monday that it had made an early-stage proposal to internet group Google Inc to acquire its set-top TV box maker Motorola Home.
“Discussions with Google are currently at a preliminary stage and there is no certainty as to whether any agreement regarding any transaction will be reached,” Pace said in a statement.
The offer is one of several bids for the unit, including from private equity firms, that Google received on Friday, according to a person familiar with the situation.
Google acquired the set-top box maker as part of its $12.5 billion acquisition in May of Motorola Mobility, which was largely motivated by a desire to snap up its large portfolio of communications patents.
Since acquiring Motorola, Google has moved to revamp the company’s loss-making mobile phone business, while appearing less interested in the set-top business.
Pace said its shares had been suspended from trading in London as the potential acquisition would be classified as a “reverse takeover” deal given the size of the acquisition relative to Pace.
Google declined to comment.
A deal could help Pace recover from the three profit warnings it issued in 2011 due to natural disasters such as flooding in Thailand and the earthquake and tsunami in Japan that damaged the group’s supply chain.
Source : Reuters
