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Siemens seeks acquisition
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February 10, 1999: 9:10 a.m. ET
German electronics giant plans to establish new U.S. unit to compete on 'net
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LONDON (CNNfn) - German electronics giant Siemens is planning an acquisition next month aimed at bolstering its competitiveness versus U.S. Internet firms, according to a report Wednesday.
Volker Jung, Siemens's (FSIE) management-board member in charge of communications networks, said the company is very interested in filling holes in its offering of data-networking products, which guide traffic on the Internet, The Wall Street Journal reported.
"We're going to do something in this area and in Internet access equipment," the Journal quoted Jung as saying. "It will come to a small investment next month and will also involve forming a new company in the U.S."
Jung dismissed the huge mergers in the industry as "wasting shareholder money," and told the Journal: "We prefer teaming and partnerships to megamergers at overblown prices."
However, Jung wouldn't elaborate further on the company's plans.
Siemens, a leading maker of telephone networks, has been slow to address the growth of the Internet and the importance of Internet technology as a platform for integrating various types of communications, according to the newspaper.
In afternoon trading in Frankfurt, Siemens shares were down 1.90 euros at 59.20.
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Siemens AG
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