Management at Siemens VDO is pleading for an initial public offering (IPO), rather than a complete takeover by its competitor Continental.
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Chairman of the automotive component manufacturing subsidiary of German industrial giant, Siemens, told the Börsen-Zeitung that an IPO is the best solution for employees, the management team and above all for customers.
Siemens announced in January that it would float more than 25% of the shares in its automotive component subsidiary on the stock exchange, but that it would remain the majority shareholder. Almost immediately Continental expressed an interest in acquiring the company outright.
Reports over the last few months have suggested that Siemens management is weighing up a rumoured EUR10bn offer from Continental, and reported interest from other potential acquirers including TRW and TomTom. At the same time it is still considering an IPO. According to dpa-AFX, Dehen appears to be irritated by Continental’s persistent interest.
With sales of EUR10bn in the past fiscal year, Siemens VDO is one of the largest and most successful Siemens groups. “An IPO would give SV greater flexibility, further reinforce its strong position in the market for automotive electronics, and actively tap the market consolidation opportunities for its growth,” said a spokesman in January.
Siemens management is expected to make a final decision later this month.
