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Wednesday, May 22, 2013
Samsung Set to Buy Stake in Rival Pantech


Samsung Electronics said Wednesday that it would buy a 10 percent stake in Pantech Corp., South Korea's third-largest handset maker.

Samsug will invest 53 billion won or some $48 million to acquire a 10 percent stake in Pantech, Korea?s number three mobile phone, the Korean Times reported today.

The deal would help Samsung further solidify bilateral cooperation in smartphone and other business areas. It would also protect Samsung?s clients for components.

Qualcomm and state-run Korea Development Bank also own stakes in Pantech.

Samsung and Pantech have strong ties in semiconductor and display businesses, with Pantech to buy semiconductors, displays and other components for use in its popular Vega-branded smartphones from Samsung?s key affiliates including Samsung SDI and Samsung Electronics.

Pantech caught the attention of the media at this year?s Mobile World Congress event in Spain with its Android-powered Vega 6 ― the largest full-HD smartphone.

The Pantech deal follows Samsung?s decision to invest in Sharp of Japan in March. Samsung acquired a 3.08 percent stake in Sharp for $112 million, allowing Samsung greater access to Sharp?s TV-making patents.


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