Bosch and Siemens Make Better Offer for Atecs.Business Editors MUNICH, Germany--(BUSINESS WIRE)--April 5, 2000 Convincing industrial concept: Joint growth strategy for leading engineering and technology company Increase in Atecs capital - Merger of Siemens Automotive Systems See ITS, embedded system, drive-by-wire, adaptive cruise control, collision avoidance system, autonomous vehicle, heads-up display, DSRC, lane departure system, CAN bus, FlexRay and SYNC. and VDO VDO Vereinigte DEUTA-Ota (Villingen, Germany; gauge manufacturer founded 1929) VDO Varus Derotation Osteotomy VDO Very Distant Object(s) VDO Voltage Drop-Out VDO Video Data Organization under Siemens industrial management Robert Bosch GmbH Robert Bosch GmbH [1] is a German corporation which was started in 1886 by Robert Bosch in Stuttgart, Germany. [2] Bosch businesses include:
Stuttgart (sht  t`gärt), city (1994 pop. 594,406), capital of Baden-Württemberg, SW Germany, on the Neckar River. , and Siemens AG Siemens AGGerman electrical-equipment manufacturer. The first Siemens company, Siemens & Halske, was founded in Berlin in 1847 to build telegraph installations. , Munich/Berlin, made an offer today to the Supervisory and Managing Boards of Mannesmann AG to acquire Atecs Mannesmann AG for Eur9.1 billion. Bosch and Siemens want to continue operating the company on a parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. basis as a joint venture and further develop its business by bringing in their own activities. The new company will be one of the most important engineering and technology enterprises on the world market. The acquisition will be financed with current liquid assets Cash, or property immediately convertible to cash, such as Securities, notes, life insurance policies with cash surrender values, U.S. savings bonds, or an account receivable. of Bosch and Siemens. Following their acquisition of the company, Siemens and Bosch intend to make additional capital available to Atecs in order to finance its growth. This move would foster long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth in the new company and help secure jobs. Bosch and Siemens hope to wrap up the negotiations as quickly as possible. The structure of the joint venture will be tailored to meet antitrust Antitrust The antitrust laws apply to virtually all industries and to every level of business, including manufacturing, transportation, distribution, and marketing. They prohibit a variety of practices that restrain trade. regulations so that approval by the antitrust authorities can be expected. Both electronical companies are convinced that their offer is the most satisfactory industrial solution for employees, shareholders and customers of Atecs Mannesmann. Following the acquisition, Siemens plans to merge its Automotive Systems Group with VDO at Atecs and assume industrial management, reflecting the buyers' stakes, of that sector. In addition, Bosch will merge its automation technology activities into the corresponding Atecs unit (Rexroth). The leading market positions of the other Atecs divisions - Sachs, Demag Krauss Maffei and Dematic - would be further expanded and enhanced through cooperation with the corresponding activities at Bosch and Siemens. Moreover, the new joint venture would profit in the future from the know-how resources of both parent companies. Bosch and Siemens intend to retain Atecs' existing bodies, management structures and its operating independence for a period of at least three years. Siemens and Bosch are technology leaders, have around 66,000 employees working in research and development, and are top-ranked for patent registrations in Germany. Both companies would reinforce their competencies in key technologies and lay the foundation for further profitable growth. For over 30 years, Bosch and Siemens have worked together with great success in the field of household appliances and have achieved an outstanding position in the world market. Robert Bosch GmbH had sales (preliminary figures) of DM54 billion (Eur27.6 billion) in fiscal 1999 and a worldwide workforce of 195,000 employees. The company's Production Goods Division (automation systems, packaging machines) posted sales of DM2.1 billion (Eur1.1 billion) in the past year. In fiscal 1999 (ended September 30), Siemens had sales of DM134.1 billion (Eur68.7 billion) and earnings after taxes of DM3.65 billion (Eur1.87 billion). Siemens Automotive Systems Group, employing 27,000 people at over 80 locations worldwide, increased its business volume 15 percent to DM6.4 billion (Eur3.3 billion) for the year. |
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