Siemens rethinks the merger with Gamesa – The Economist

The steering committee of the German giant detects uncertainties in the operation, in particular on whether we should launch or a takeover bid.

The dome Siemens policy considers that there are doubts unresolved in the operation to merge the wind assets of the German industrial giant Gamesa. Although currently both groups continue specifying details, uncertainties could slow the operation. Gamesa back in the stock market more than 4%, leading the falls of the Ibex 35.

Financial sources said the managing board of the German company (equivalent to the steering committee of a company in Spain) has met this week and has concluded that there are uncertainties of legal and political that should be clear or at least consider before going ahead with the operation. The final decision in any case, it supervisary board, equivalent to the board. Siemens usually meets this body in mid-month, although there is no fixed date. The next supervisary board could be held next week, and could be crucial to give a boost to the operation or, on the contrary, reframe it.

Officials of Siemens in Munich merely stated yesterday that “no make comments. “

negotiations between Siemens and Gamesa have lasted for weeks, and the market is growing impatience. On Monday a month was fulfilled since Gamesa admitted to the Comisión Nacional del Mercado de Valores (CNMV), “the existence of talks aimed at a potential integration of certain businesses of Siemens Wind Power and society via an operation fusion “.

Since then, he has not officially heard anything more, except for the statements of Ignacio Sanchez Galan, chairman of Iberdrola, Gamesa shareholder, with almost 20%. Sanchez Galan said a week ago that such a merger “would be excellent news”.

Like other groups with aspirations foreign investment in Spain, Siemens is beginning to be sensitive to the growing political uncertainty in the country. After two months of the conclusion of the election, Spain still does not form a government, and looks set to repeat the elections. Moreover, legal questions have to do, especially with the fact that it is not sure to be exempted Siemens launched a takeover bid for 100% of Gamesa. The initial design of the operation is a merger, with a capital of Gamesa in which Siemens would contribute assets and possibly money. Siemens would make the most of the new merged group.

In principle, this would force him to launch a takeover bid for 100%. But as EXPANDING ahead of Feb. 10, the intention is to invoke the exception raised by the Takeover Law (Royal Decree 1066/2007) for supervening majorities in mergers, prior authorization from the CNMV. Specifically, paragraph g of Article 8 of that law. Legal sources say Siemens and Gamesa have consultations prior to the CNMV. Although this body does not see a priori reasons for not granting the exemption opa, Siemens has not achieved absolute guarantees. Gamesa has 50,000 minority. A takeover bid which would raise operation. Gamesa worth 4.876 billion Stock Exchange yesterday. The group shot on the floor more than 20% in late January when he acknowledged that negotiating a corporate operation with Siemens.

He came to exceed EUR 18 per share, in line with the 19 euros or 20 euros that some analysts valued each title heading into the transaction with the German giant. After the value has been deflated somewhat, but keeps the pulse on the floor. Yesterday, it closed at 17.46 euros after losing 1.5%.

Siemens is considering other legal questions that have to do with issues of competition in Europe. The merged company would lead the world’s leading wind turbine manufacturer in the world, with a relevant market share especially in Europe, where it would look with new giant magnifying glass. Siemens and Gamesa far outweigh market share Vestas the first European and global manufacturer now

fondos@eleconomista.com.mx

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