Siemens Gets Two €12B Bids for VDO Auto Electronics Unit -- Report

Siemens has received two bids, each worth more than €12b, for its automotive electronics unit VDO, the Handelsblatt paper reported. Citing financial sources, the paper said Monday that TRW, which is majority owned by The Blackstone Group, and Germany's Continental AG have each made offers for the €10B business. Siemens' board is expected to discuss the future of VDO at a meeting on Wednesday. In the past, Siemens has said it would like to list the company publicly, but that it also would consider acquisition proposals. All three companies declined to comment. Media reports stated that Blackstone and TRW have promised not to close any German factories to sweeten their offer for the business.

Sources: Reuters, Thomson Financial
Commentary: Tough Times for Auto Parts Makers Should Continue • Getting Bullish On Germany
Stocks/ETFs to watch: Siemens AG (SI), TRW Automotive Holdings Corp. (TRW), Blackstone Group LP (BX), Continental SG (CTTAY.PK). Competitors: Lear Corp. (LEA), BorgWarner (BWA), ArvinMeritor (ARM), Johnson Controls (JCI). ETFs: iShares MSCI Germany Index Fund (EWG)

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