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Continental Bids For Siemens' Auto Electronics Unit

Initial public offering, if it happens, is expected to be one year's biggest in Germany. VDO has annual sales of approximately 10 billion euros ($13.4 billion).

FRANKFURT, Germany (AP) - Auto supplier Continental AG has made a preliminary bid for the auto electronics unit of Siemens AG, the company's chief financial officer said Thursday.
 
Continental has made no secret in recent months of its desire to acquire Siemens' VDO operation.
 
Continental CFO Alan Hippe said the company has now made what he described as an ''indicative,'' rather than formal, bid. He gave no details.
 
Siemens so far has said it plans to float Schwalbach-based VDO but intends to keep a majority stake of at least 50.1 percent.
 
The initial public offering, if it happens, is expected to be one of the biggest in Germany this year. VDO has annual sales of approximately 10 billion euros ($13.4 billion).
 
Analysts estimate that the unit's market capitalization could be between 5 billion euros and 8 billion euros ($6.7 billion and $10.7 billion).
 
Earlier this year, however, Siemens supervisory board chairman, Gerhard Cromme, said all offers would be considered.
 
Hippe, speaking to reporters on the sidelines of an investor conference in Frankfurt, said his company had not yet done due diligence on a possible acquisition and declined to say how much it likely would offer.