Siemens Sticks to Plan for VDO Automotive Unit IPO

(Akron/Tire Review) Siemens said it is sticking to its plan for an initial public offering of up to half of its automotive engineering unit VDO despite interest from potential buyers.

The chief executive of German tyre and car parts maker Continental this week reiterated his interest in buying VDO, and the Financial Times said U.S. car parts supplier TRW Automotive Holdings was also considering making a bid.

Continental CEO Manfred Wennemer said he was in regular contact with Siemens about VDO, adding that he would consider acquiring a minority stake but wanted management control over the business.

He said he valued VDO, which makes products including sensors and safety and navigation systems, at between US$7.9 billion and 10.5 billion.

A Siemens spokesman said Siemens wanted to keep control over the running of VDO and was going ahead with its IPO plans.

Earlier, the newspaper cited three people involved in the bidding process as saying TRW was considering a bid for VDO, and said other profitable U.S. suppliers were also eyeing the business.

Sources familiar with the matter told Reuters last month Siemens had already invited investment banks to compete to run a planned initial public offering of VDO.