[Ericsson may be talking with Matsushita about selling its handset business, according to the French newspaper L'Agefi.]

Paris -- "Ericsson, the world's third- largest mobile phone maker, declined to comment on Friday on a report it may cede control of its handset business to Japanese cellphone maker Matsushita Communication Industrial in a joint venture. Citing unidentified internal sources at Ericsson, French financial daily L'Agefi said the Swedish telecoms equipment maker was in discussions with Matsushita Communication, a unit of consumer electronics group Matsushita Electric Industrial Ltd.

"The company is considering selling its unprofitable mobile phone business to a joint venture, in which it might take a minority stake, L'Agefi said -- a move analysts said would be logical and good news for Ericsson.

"Ericsson would not confirm or deny the report, while Matsushita Communication was not immediately available for comment.

"This is just a rumor, and we don't comment on rumors," a spokeswoman for Ericsson's consumer products division said.

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