To: Mika Kukkanen who wrote (3986 ) 4/16/2000 3:25:00 AM From: elmatador Read Replies (1) | Respond to of 5390
Mannesmann to sell Atecs to Siemens, Bosch. A sign that ERICY will not sell much to Vodafone in the future. German Inc. (everything in the house) is reasserting its power. Mannesmann to sell Atecs to Siemens, Bosch By Bertrand Benoit in Frankfurt Published: April 14 2000 18:25GMT | Last Updated: April 14 2000 21:09GMT Mannesmann, the German telecommunications group now part of the UK's Vodafone AirTouch, agreed on Friday to sell Atecs, its automotive and engineering business, to Siemens, the electronics group, and privately held Robert Bosch. Although Siemens last week made a E9.1bn ($8.7bn) offer, trumping an earlier E8.75bn bid from the steel and engineering group Thyssen Krupp, it is said to have substantially raised this offer during a final round of talks with Mannesmann. Mannesmann's decision is believed to have come despite Thyssen Krupp's last minute offer to buy Mannesmann's steel tube business in a last-ditch attempt to secure its bid. Thyssen Krupp's management is said to have offered the last-minute concession as part of a wide range of issues discussed during the negotiations at Mannesmann's headquarters in Dsseldorf. Although few details were available, it is understood that the level of the Siemens offer was the only element of its bid to have been radically changed from its original proposal. Persons close to the situation said the bid did not include an offer to take over the tubes business. Both suitors made their final offers on Friday afternoon, before the 2pm local time (1200 GMT) deadline set by Mannesmann on Thursday, but talks extended for another five hours before a decision was reached. People close to the situation said that a separate solution for the R”hrenwerke tubes business had been found that involved the separate sale of its assets in Europe and Latin America. The decision to accept the Siemens/Bosch offer is thought to have the support of Vodafone. It is expected to be officially ratified by Mannesmann's 20-strong supervisory board when it meets on Monday. Under German corporate law, the supervisory board acts in a non-executive capacity and represents the interests of the company's employees and major shareholders. Persons close to the situation said its members were unlikely to oppose a decision by the management board. Yet Klaus Zwickel, head of Germany's largest trade union and deputy chairman of the supervisory board, said employee representatives, who make up half the board's members, had yet to reach a decision on the offers and that an important criteria would be the future of the tubes business. The tubes business represents Mannesmann's original activity and its oldest division. The supervisory board, which is now expected to abandon plans for an initial public offering of Atecs in June, Mannesmann's original decision, will include representatives of Vodafone for the first time when it convenes on Monday. Chris Gent, Vodafone's chief executive, Ken Hydon, financial director, Lord MacLaurin of Knebworth, chairman, and Wilhelm Haarmann, a German-based lawyer, joined the board this week after the EU Commission cleared Vodafone's takeover of Mannesmann, giving it legal responsibility for Atecs' fate.