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Bang & Olufsen in takeover talks with China's Sparkle Roll
[BEIJING] China's Sparkle Roll Group Ltd said it is in talks to acquire Bang & Olufsen A/S, the Danish maker of high-end hi-fi systems.
Several elements in the discussions remain to be resolved, the company said Tuesday in a statement.
The price needs to be "reasonable" and reflect "the significant uncertainty and the investments needed to ensure further development and growth," the company said, without disclosing pricing or payment details.
Shares in B&O rose as much as 8 per cent and traded 3.7 per cent higher at 71 kroner as of 9:12 am in Copenhagen. So far this year, the company's stock has lost about 14 per cent.
B&O, which makes US$8,000-plus TVs, has attracted suitors as it has struggled to win buyers for its products as prices for flat-screen sets tumble and more people listen to music on smartphones rather than home hi-fi systems.
In 2012, Bang & Olufsen started a partnership with Sparkle Roll to boost sales in China.
Last week, B&O said it will outsource the production of televisions to LG Electronics Inc.