Mannesmann sells manufacturing unit for E9.6bn

NEWS Mannesmann has agreed the sale of its Atecs Mannesmann automotive and engineering unit to German electronics giant Siemens and auto-parts manufacturer Robert Bosch, for E9.6bn (£5.7bn). The Siemens-Bosch offer topped an earlier bid from industrial manufacturer Thyssen Krupp, which claimed it had a better growth strategy for Atecs. The sale also rules out plans from Mannesmann's CEO Klaus Esser to float the manufacturing unit as an independent company. While parent company Vodafone AirTouch originally backed an IPO, the volatile stock market convinced Vodafone to sell. Mannesmann also released preliminary figures for 1999 showing that earnings before tax were up 37 per cent to E4.3bn (£2.5bn). Chris Gent, Vodafone AirTouch CEO, has been installed as chairman of the Mannesmann Supervisory Board.