Dubai Firm Joins In MTU Bid
Dubai International Capital is teaming up with buyout firm Kohlberg Kravis Roberts (KKR) to bid for DaimlerChrysler's diesel engine unit, MTU Friedrichshafen, the German newspaper Handelsblatt has reported, citing sources familiar with the talks.
The Gulf emirate's government took a stake of about 2% in DaimlerChrysler in January. KKR is considered the frontrunner to buy the unit, but is competing with rivals EQT and CVC Capital Partners as the auction for more than $1.2 billion enters its final round, sources told Reuters. Final bids for the business are likely next month, with a sale agreement possible before the end of the year, the sources said.
Apart from MTU, with its annual sales of $1.6 billion, Daimler is throwing in the off-highway engine activities of MTU Detroit Diesel, as well as the light truck engines from its Industrial Drive Systems unit, with sales of $478 million and $119 million, respectively.