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VA Tech finds Siemens’ offer adequate

21 January 2005 – Siemens Austria’s improved takeover offer of €65 per share has been described as ‘economically adequate’ by the VA Tech board.

The raised offer from Siemens came after the Austrian government, who hold a 25 per cent stake in VA Tech, called on the German industrial group to improve its offer if it was to be successful.

Siemens previous offer for the Austrian power firm came in December and was €55 per share, €3 under the then VA Tech share price. The surprise offer came after it acquired a 16.4 per cent stake in the company from Austrian investor Mirko Kovates. Although the board officially took a neutral position a released statement described it as commercially inadequate.

Siemens made a first, and unsuccessful, attempt to purchase the company in September 2004 in the face of criticism from politicians, trade unions and the public. It has long maintained that it would not make a hostile takeover bid.