GERMANY: Continental already negotiating to sell off Siemens VDO plants
Continental AG is reportedly negotiating to sell Siemens VDO's Berlin plant. Brose is named as a possible buyer.
The German press agency cited a union source, who also said that there are concerns that another plant in Würzburg, which produces almost identical products to the plant in Berlin, could also be the target of a possible sale.
The head of the Bavaria section of the IG Metall union, Werner Neugebauer, expressed concern that Continental is negotiating the sale of parts of Siemens VDO before it has even taken ownership of the company.
A company spokesman would not comment on the news saying that it is speculation.
On 25 July Continental announced that it would acquire Siemens VDO Automotive for EUR11.4bn. The transaction is expected to be completed by the end of this year. Recently, the supplier successfully placed a loan in the bank market to raise EUR13.5bn for long-term financing of the acquisition.
Yesterday the company announced it would raise additional short-term capital by issuing 14.65m new shares, with an estimated value of around EUR1.5bn.