Siemens Employees See Stock As Protection From Takeover
Jan. 13, 2005
Employee shareholders at Siemens, the German power and electronics giant, are hoping to ward off the threat of a foreign hostile bid that could swallow their company up. They fear Siemens could meet the same fate as Mannessmann AG, recently absorbed by ...
Employee shareholders at Siemens, the German power and electronics giant, are hoping to ward off the threat of a foreign hostile bid that could swallow their company up. They fear Siemens could meet the same fate as Mannessmann AG, recently absorbed by British mobile phone operator Vodaphone Airtouch. A Siemens spokesman said: "The Vodafone-Mannesmann deal is highlighting hostile takeovers in Germany. We do not see our company at risk. But nothing can be excluded." About 90% of Siemens shares are held by unidentified investors. The Siemens family holds 6.8%, and employees between 8% and 10%. The employee shareholders say they aim to increase their stake to 25% at a cost of US$8.8 billion. This would provide a stronger core of shareholder resistance to rumors of a foreign grab, which have tripled Siemens' price over the past year.
