Siemens to sell auto parts unit
Thursday, 26 July 2007
FRANKFURT, July 25 (AP): Siemens AG said Wednesday it will sell its VDO auto parts unit to Germany's Continental AG in a US$15.67 billion deal, ending speculation that it was going to spin off the unit independently.
The Munich-based company also said it agreed to acquire US-based Dade Behring Inc., a clinical laboratory diagnostics company, for $7.0 billion.
It is offering $77 a share for Deerfield, Ill.-based company in a deal that is subject to regulatory approval but is expected to be completed by the second quarter of fiscal 2008.
The VDO decision was not a great surprise given that Continental, an auto parts supplier, said last month it had made a preliminary bid for the Siemens' auto electronics unit.
Hanover-based Continental has made no secret over recent months of its desire to acquire Siemens' VDO operation. CFO Alan Hippe said in June that his company had made what he dubbed an "indicative," rather than formal, bid. He gave no financial details.
The Munich-based company also said it agreed to acquire US-based Dade Behring Inc., a clinical laboratory diagnostics company, for $7.0 billion.
It is offering $77 a share for Deerfield, Ill.-based company in a deal that is subject to regulatory approval but is expected to be completed by the second quarter of fiscal 2008.
The VDO decision was not a great surprise given that Continental, an auto parts supplier, said last month it had made a preliminary bid for the Siemens' auto electronics unit.
Hanover-based Continental has made no secret over recent months of its desire to acquire Siemens' VDO operation. CFO Alan Hippe said in June that his company had made what he dubbed an "indicative," rather than formal, bid. He gave no financial details.