Speculation about the future of handset joint-venture Sony Ericsson has resurfaced following reports in the German media that Japan’s Sony has approached partner, Sweden’s Ericsson, regarding a possible takeover of the unit. According to a report by Manager-Magazin, Sony is in talks with banks to finance a takeover despite the banks being reluctant to back such a deal in the current financial climate. Neither company has commented on the latest reports but both are understood to be concerned at the recent performance of the handset venture, which has lost market share to rivals such as LG and Samsung in recent quarters. “It doesn’t sound like a final decision has been cast, but it seems clear something is going to happen,” Charter Equity Research analyst Ed Snyder told The Street.

In January, Ericsson’s CEO and president Carl-Henric Svanberg noted that the venture had been a drag on its most recent financial results, while Sony CEO Howard Stringer also hinted that the venture could be wound down in an interview with German newspaper Die Welt last year. For full-year 2008, Sony Ericsson reported a net loss of EUR73 million after a net profit of EUR1.1 billion in 2007, with sales falling to EUR11.24 billion from EUR12.91 billion. The vendor is implementing a wide-ranging cost cutting programme this year, which will see the elimination of 2,000 jobs globally.