Pursuits
Bang & Olufsen Outsources TV Making as Takeover Talks Continue
- LG Electronics to make TVs as B&O focuses design, acoustics
- Pact with LG `crucial' for Danish company to reach margin goal
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Bang & Olufsen A/S will outsource the production of televisions to LG Electronics Inc. to cut costs while the Danish maker of high-end hi-fi systems said it remains in talks to be bought by an unnamed suitor.
The 91-year-old electronics maker said its pact with LG will lead to annual savings of 150 million kroner ($23 million) to 200 million kroner when fully implemented over the next three years. The partnership is crucial to reach a goal of an operating margin of about 7 percent and a positive free cash flow, it said in a statement Friday.