Videocon Group, India's largest consumer electronics maker is set to join the wireless services business with speculation that it has interest in taking over Motorola's Mobile-phone business.
According to Merrill Lynch & Co., Motorola's handset business is worth about $3.8 billion, which is more than twice the market value of Videocon Industries Ltd.
The speculation about Motorola's bid raised Videocon Industries' shares by 2.5 percent to 314.55 rupees at the close of trading on the Bombay Stock Exchange although it has declined by 62 percent this year.
Motorola's German shares increased by 2.3 percent to $9.51 and Motorola, based in Schaumburg, Illinois, increased by 1 percent to $9.30 on the New York Stock Exchange.
Motorola shares declined by 55 percent since the beginning of last year after most of its customers defected to phones from Apple Inc. and Nokia.
Videocon will start offering mobile phone services in India by the end of this year and it is forecasting 20 million subscribers within four years.
Motorola's handset, Razr, which was introduced in 2004, has been out-competed by other phones with more features including iPhone from Apple, BlackBerry from Research In Motion and Samsung Electronics' BlackJack.
Motorola is likely to face more competition as more companies such as Garmin Ltd. and Hewlett-Packard Co. enter the handset business targeting buyers who are willing to pay as much $600.