Toshiba Look To Deal With Fujitsu In An Effort To Cut PC Losses
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Struggling Japanese PC company Toshiba is looking to cut a deal with Fujitsu, and Vaio the spin off Sony PC company, in an effort to survive in the PC market that is currently witnessing major declines in demand, the move could impact Lenovo.

Insiders claim that if a deal is not found Toshiba will will look to sell their PC business or shut the loss making operation down altogether.

In Australia Toshiba is exposed to the downturn in business at consumer electronics retailer Dick Smith, who is currently discounting out Toshiba PC inventory.

Fujitsu who in the past has operated their loss making Australian PC business as a seperate entity recently explored the concept of bring the PC business in under their main services operation.    

Now Fujitsu Ltd is considering a merger of their personal computer businesses, two people familiar with the matter said at the weekend, as the companies look to shed struggling units to overhaul their operations.

The Japanese electronics firms are in the early stages of exploring a combination and it is unclear whether a deal will be reached, said the people, who declined to be named because the discussions remained confidential.

Toshiba, seeking to raise capital after a $1.3 billion accounting scandal, has already agreed to sell its image sensor business and said it is considering splitting off part of its chip business.

The nuclear-to-laptops conglomerate said in a statement on Friday it is considering various possibilities to improve its operations, including business reorganizations with other firms, but nothing had been decided yet.

Fujitsu, which announced in October that it intends to split off its PC division, said it is considering various options for the business.

The Nikkei business daily reported earlier that Toshiba, Fujitsu and unlisted Vaio, which was spun off from Sony last year, are considering a three-way merger of their PC businesses.

The merged company would have just over 30 percent of the Japanese market, overtaking the current top-ranked NEC Lenovo Japan Group, which controls 26.3 percent, the Nikkei said without citing any source for its information.

A Vaio spokeswoman dismissed the Nikkei report as speculation, adding that the company was not in talks with anyone about its PC operations.