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Thyssen eyes auto buy
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March 24, 2000: 8:40 a.m. ET
German steel maker makes offer for Mannesmann unit; Vodafone sits tight
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LONDON (CNNfn) - Britain's Vodafone AirTouch said Friday that it was committed to the flotation of Mannesmann's engineering and automotive business, but would consider an unsolicited offer for the unit from the German industrial firm ThyssenKrupp.
Vodafone confirmed that it had received a bid for the Atecs Mannesmann operation after ThyssenKrupp had earlier said it was open to partnership talks about the unit. More than 50 percent of Atecs is scheduled to be floated in June in a deal that would value the firm at between  9 billion and 11 billion ($10.7 billion). Such a valuation should propel the unit onto Frankfurt's blue-chip Dax 30 index.
Mannesmann had already decided to split its core industrial holdings from its fast-growing telecom business before succumbing to a hostile bid from Vodafone in February after an often-bitter six-month battle. The company had been under pressure to unlock the value from its communications operation, which includes Germany's largest cellular network.
 ThyssenKrupp, the product of a 1999 merger between rivals Thyssen AG and Fried. Krupp AG, was reported to be prepared to offer around 9 billion for Atecs, which employs 90,000 staff and had revenue of 12.3 billion last year. "Against a background of rapidly changing markets, ThyssenKrupp is firmly convinced that joining forces would create a leading international supplier," the company said in a statement, though it declined to comment on any possible price.
ThyssenKrupp restructuring
The Duesseldorf-based firm announced plans in December to float between 25 and 30 percent of its steel business as part of a broad restructuring plan that will see it focus on engineering and shed 20,000 jobs.
Vodafone said it would consider the ThyssenKrupp offer after it has completed its acquisition of Mannesmann. The deal is being reviewed by European antitrust officials, with a decision expected in mid-April. Vodafone said it would consider the offer if it still remained after clearance is received, and would not limit its scrutiny to price alone.
The steel maker's interest comes just days after Vodafone agreed to merge VDO, Atec's auto electronics arm, into a new 50:50 joint venture with Germany's Siemens (FSIE), creating an entity with annual sales of 7 billion. VDO accounted for 28 percent of Atec's sales last year.
 The five businesses which make up Atecs generated around 60 percent of Mannesmann's total sales last year and include Rexroth, a world leader in hydraulic systems, plastics and pipes maker Demag Kraus-Maffei and the Sachs auto parts unit.
ThyssenKrupp (FTKA) shares were 0.8 percent higher at 26 in early afternoon trade in Frankfurt Friday, having earlier been more than 5 percent ahead. The company is valued at 13.4 billion. Vodafone AirTouch (VOD) shares were flat at 350 pence in London. 
-- from staff and wire reports
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