Hitachi, NEC, Casio in phone nerger talks

Hitachi Ltd., NEC Corp. and Casio Computer Co. are in talks about a
possible merger of their mobile phone businesses in a bid to improve
profitability, reports said Friday. NEC is negotiating to take a
stake of more than 50 percent in Casio Hitachi Mobile Communications
Co., a joint venture which was founded in 2004 by Casio and Hitachi,
Kyodo News reported, citing unnamed sources. Together the three
would have the second- largest share in the Japanese mobile phone
handset market, behind Sharp Corp. The three companies declined to
confirm the report. Most Japanese already own a mobile telephone
and operators and handset manufactures are facing growing challenges
to boost revenue in a crowded market, particularly given the weak
economy and shrinking population.