Acer dumps Siemens

Beleaguered computer manufacturer Siemens AG has failed in its attempt to sell its computer manufacturing facilities to the Taiwanese company, Acer.

Siemens, desperately trying to restructure itself after a succession of poor results, has been in talks with Acer since April but, according to an official statement, Acer broke off talks "due to concern aroused by the financial crisis raging throughout Asia... and Russia".

Acer has not been a model of profitability: last month its semiconductor division cut its net profit forecast for 1998 by 36 percent prompting the company's chairman Stan Shih and fellow executives to request sharp pay cuts to atone for steep losses at the subsidiary.