Contrary to the flurry of partnership and acquisition rumors that have been speculated, Siemens will hold onto its profit-losing mobile division and has no intentions of selling.

"Our company is working on a reshuffle for the unit and new strategies will be introduced to help reverse the handset business," said the official who refused to be named.

"We are not going to sell the unit, but are seeking co- operation," he said.

Siemens mobile division has seen its market share and sales erode from increasing competition, plummeting to $1.52 billion from 1.93 billion just a year ago.

Last month, Siemens CEO Heinrich Pierer, said it would turn around, close, or sell the unit. Misguided reports were expecting an announcement at the annual shareholders meeting. However, analysts did not rule out the possibility that Siemens will seek partnerships with other handset makers.