Siemens Hires Banks for Possible VDO IPO

(Akron/Tire Review)) News reports out of Germany say that Siemens AG has hired Goldman Sachs Group Inc., Morgan Stanley and Deutsche Bank AG to act as lead coordinators for a possible initial public offering (IPO) of its VDO Automotive unit.

The reports added that Siemens has not yet made a final decision on whether or not it will seek to list a minority stake in the unit, or sell it outright.

Continental AG has repeatedly said it wants to buy the business from Siemens.

Following an IPO, analysts expect VDO to achieve a market capitalization of $9.5 billion to $12 billion. However, if the entire business is sold, they think Siemens could receive more than $14 billion for it.