|
ABB gives up Adtranz
|
 |
January 20, 1999: 8:18 a.m. ET
DaimlerChrysler pays $472M for ABB's 50% stake in train maker
|
LONDON (CNNfn) - DaimlerChrysler, the automotive and industrial giant, said Wednesday it had paid $472 million to buy out partner ABB's 50 percent stake in Adtranz, a German maker of locomotives and high speed trains.
DaimlerChrysler already owns 50 percent of Adtranz in a joint venture with ABB, an international engineering group.
DaimlerChrysler board member Eckhard Codes said: "This is a clear signal that we intend to move Adtranz forward forcefully.''
"By integrating Adtranz fully into our strategic framework, we expect gains both for Adtranz and for DaimlerChrysler,'' he added.
Adtranz's portfolio ranges from electric and diesel locomotives and high speed trains to intercity and regional trains, trams and underground trains. It also makes signal and traffic control systems.
Shareholders in both groups welcomed the deal. In Zurich ABB shares rose 4 percent to 1,577 Swiss francs, and in Frankfurt DaimlerChrysler rose 2 percent to 92 euros.
Adtranz was formed in 1996, and said it expects its 1998 revenues to surpass the $3.7 billion it generated in the previous year. The company employs 24,000 people.
|
|
|
|
|
|
Adtranz
DaimlerChrysler
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
