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BenQ Mobile Faces Liquidation

Taiwanese hardware manufacturer BenQ bought German-based Siemens'mobile arm for $97.5 million and created BenQ Mobile less than two years ago. BenQ Mobile filed for insolvency in September 2006, when BenQ said it was pulling out after suffering "unsustainable losses." Liquidation looks inevitable and 3000 jobs are at risk; investors are not willing to buy the struggling company. Under German law, a company has three months' grace after filing for bankruptcy before formal insolvency proceedings begin. BenQ is expected to release new information about BenQ Mobile's future on Wednesday.

News source: c|net's News.com

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