UPDATE: Talks To Buy MTU Heat Up

Posted on October 31, 2005

DaimlerChrysler said German truck and engine manufacturer MAN has re-entered talks to acquire Daimler’s MTU Friedrichshafen diesel engine operations, a DaimlerChrysler spokeswoman said, confirming an earlier report by Reuters.

MAN apparently has replaced buyout firm CVC, which has dropped out of the process. Also speculated to be in the running are a consortium led by buyout firm Kohlberg Kravis Roberts (KKR) and the Swedish group EQT.

"We have revived our old offer," an MAN reportedly said, without commenting on the offer's conditions. MAN was on the short list of bidders earlier, but backed off when DaimlerChrysler said other interested parties made a "better offer". According to German press reports, MAN submitted a bid of € 1.1 billion, while other bids were apparently in the € 1.7 billion range.

Dubai International Capital (DCI) said it is one of the three final bidders for MTU. Reports are that the final announcement will be made by the end of November.