making mobile handsets unit. The Financial Times reported Siemens is set to form a handsets joint venture with Taiwanese tech company BenQ. German chipmaker Infineon closed down 3.1 percent on fears it might lose its supply contract with Siemens, its largest customer for mobile phone chips. Italian automaker Fiat ended 1.6 percent higher, boosted by renewed speculation that the government might announce a package of incentives to encourage Italian consumers to buy new cars, or that the group might spin off its car unit. --SP 1852 Local Time 1552 GMT