German electronics giant Siemens has failed to find a buyer for its loss-making Enterprise Networks division, with observers directly blaming the debacle surrounding the collapse of mobile phone maker BenQ Mobile, the Financial Times Deutschland reported.

Siemens had had to admit failure after the last remaining serious bidder -- a consortium of financial investors Permira and Apollo Management -- threw in the towel following months of negotiations, FT Deutschland quoted sources close to the talks as saying.

The decision to pull the plug on talks is a direct result of the BenQ collapse, the newspaper continued.

Siemens makes telecommunications equipment and Enterprise Networks offers equipment, telecommunications and services to businesses.

Siemens had sold its mobile handset business to Taiwan-based BenQ last year. But the division filed for insolvency earlier this year after the Taiwan parent cut off further financing. And Siemens came under heavy fire for its role in the affair.

Siemens chief Klaus Kleinfeld did not want to risk further discussion over the group's social responsibility in the case of the Enterprise Networks division, FT Deutschland said.

Furthermore, the division has been hit by a corruption and bribery scandal, it added.