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News Summary: Philips breaks off deal with Funai

The Associated Press

DEAL BREAKER: Royal Philips NV has ended a $200 million sale and licensing deal it struck this year with Japan's Funai Electric Co. and will seek damages for breach of contract.

PASS THE BATON: Under the January agreement, Funai was to assume production of Philips' audio, video and media accessories unit and license the right to distribute the products with Philips branding for five years.

NOT 110%: Philips said the reason the deal is canceled is that Funai "refused to take the necessary steps to enable completion of the transaction." Calls to Funai's offices in Osaka and Tokyo went unanswered.