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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Maurice Winn who wrote (37178)	7/25/1999 6:05:00 PM
From: DOUG H	Respond to of 152472

Maurice, Here's the other 1B, do they buy cellphones? automedia.com

To: Maurice Winn who wrote (37178)	7/25/1999 7:54:00 PM
From: Voltaire	Respond to of 152472

STOCK QUOTES Enter symbol: Lookup symbol NEWS Top Financial News Top World News Stock Market Update Technology U.S. Economy Columns Special Report STOCKS Tech Stocks Stocks on the Move Chart Builder World Indices Movers by Exchange Stocks in the Dow S&P 500 Snapshot Industry Movers Most Active Options IPO Center Regional Indices RATES & BONDS Key Rates U.S. Treasuries International Bonds Muni Bond Yields CURRENCIES Currency Rates Cross Currency Rates Currency Calculator EMU Update COMMODITIES Most Active Futures Commodity Movers Energy Technology News Sun, 25 Jul 1999, 7:47pm EDT Siemens Lines Up Eight Banks to Help It Sell as Much as $13 Billion Assets By Benjamin Wootliff Siemens Lines Up 8 Banks to Help Sell as Much as $13 Bln Assets London, July 24 (Bloomberg) -- Siemens AG has hired eight investment banks to oversee Germany's biggest corporate reorganization, involving sales of assets valued by analysts at as much as 25 billion deutsche marks ($13.4 billion.) The nation's largest electronics and engineering company said Thursday it hired Merrill Lynch & Co., Warburg Dillon Read and Commerzbank AG to oversee a stock offering of its Epcos components business, the latest step in the streamlining process. Chief Executive Heinrich von Pierer has pledged to rid the company of units with revenues of 17 billion marks, or 15 percent of annual sales. The aim is to focus on more profitable businesses such as telecommunications equipment and better compete with rivals including Royal Philips Electronics NV. ''Siemens had been reluctant to work on its portfolio'' of businesses, and that gave competitors an edge, said Frank Rothauge, an analyst at Oppenheim Finanzanalyse GmbH in Frankfurt. Now, it's ''in a position to catch up.'' The Munich-based company began the reorganization in July 1998, when Dresdner Kleinwort Benson helped Siemens sell its power-cables business to Pirelli SpA of Italy for about 500 million marks. The bulk of the disposals and stock offerings will come in the second half of this year. The electromechanical division, grouping units that make electronic switches to stop or redirect power, electronic connectors and fiber-optic components, will be sold by J.P. Morgan & Co. for more than 1.5 billion marks, analysts said. Buyout firms, including Kohlberg Kravis Roberts & Co. and Schroder Ventures, have made offers for the business. Private-Equity Buyers? Merrill Lynch has been chosen to sell Siemens's vacuum- components business in a transaction worth as much as 500 million marks. The sale, which analysts say will attract private-equity investors, should be completed before the Epcos IPO, planned for October. Such firms often buy businesses, sell securities backed by them and ultimately sell the units either to investors or to industrial buyers. Investment banks that are not working for Siemens may advise private-equity buyers of the assets, as well as on debt financing. Private-equity firms traditionally pay for their purchases by taking out bridge loans from investment banks. They may then refinance the loans with high-yielding bonds, which can bring in fees of about 3 percent of the total offer. Morgan Stanley Dean Witter & Co. is selling Siemens Nixdorf's cash machines and electronic point-of-sale terminals business, people familiar with the situation have said. That sale could net the company about 1.4 billion marks, said James Stettler, an equity analyst with Dresdner Kleinwort Benson. It, too, is likely to attract private-equity firms. Stock Offerings Siemens has chosen initial stock offerings for the two largest businesses it's selling. Infineon, a semiconductor company, will be sold in an IPO in February or March by Deutsche Bank AG and Goldman Sachs Group Inc. The sale of a 25 percent stake could be worth as much as 5 billion marks and further share sales are likely to follow, Siemens has said. Siemens will sell about 75 percent of Epcos, raising about 2.25 billion marks, Chief Financial Officer Heinz-Joachim Neubuerger said. The stock will be traded on the New York Stock Exchange, with the remaining 25 percent stake split between Siemens and its partner in the venture, Matsushita Electric Industrial Co. of Japan. Warburg Dillon Read has also been retained for the sale of Cablecom Holding AG, to raise at least 400 million Swiss francs ($260 million) for Siemens, which owns one-third of the company. Siemens reported last week a 17 percent increase in third- quarter profit, to 697 million marks, as cost cuts at the semiconductor division brought that unit back to profit. Philips's profit declined in the latest quarter as sales of its high-margin chips flagged. Still, the Dutch company leads the industry in Europe, and its shares have risen 60 percent this year, compared with 40 percent for Siemens. ©1999 Bloomberg L.P. All rights reserved. Terms of Service, Privacy Policy and Trademarks. Voltaire