From Reuters via Siemens VDO
HANOVER, Germany — Continental AG is still in talks with Siemens AG about buying its VDO automotive electronics unit, Continental CEO Manfred Wennemer said, but he is prepared to be patient.
"We are in regular talks," Wennemer told reporters late on Tuesday in remarks embargoed until today. "We are ready for an acquisition."
He said a deal would be good for all the parties concerned but acknowledged that any transaction depended on approval from Siemens, which has repeatedly said its preferred option is to float VDO on the stock market by the end of September.
One industry source has said Continental has offered more than $13 billion for VDO, but Continental has not confirmed the figure.
Siemens Chairman Gerhard Cromme has said the offer was not high enough, and Siemens finance chief Joe Kaeser has said Continental’s bid did not provide a competitive alternative to a flotation of VDO.
Wennemer said Continental would be prepared to take a minority stake in VDO as long as it could run the company, but Siemens has said it intends to keep a majority stake in VDO after it is listed.
Siemens has mandated investment banks Deutsche Bank, Goldman Sachs and Morgan Stanley to prepare a flotation of VDO, which specializes in electronics and sensors including safety and entertainment equipment.
It had 2006 sales of $13.4 billion. Analysts value it at up to $11.7 billion, which would make the IPO the biggest in Germany this year.
