German Auto Parts Unit Gets New Bid

Siemens and Robert Bosch, two of Germany’s largest auto parts companies, offered $8.8 billion for Mannesmann’s auto parts and engineering unit, Atecs Mannesmann, topping a bid by rival ThyssenKrupp by 4%.

Siemens, Bosch and Atecs would together have about $24 billion in annual parts sales, approaching the $29 billion of Delphi Automotive Systems Corp., the world’s largest supplier.

Mannesmann’s supervisory board decided to review the bids for the unit and to meet again on April 17 on the proposals as well as on whether to proceed with a share sale.

The battle over Atecs comes as parts makers face increased pressure to cut prices and deliver entire steering, braking and other systems rather than single components to car makers.

Mannesmann said it would review the offers with Vodafone AirTouch, which doesn’t yet have European Union antitrust approval for its $190-billion acquisition of Mannesmann.