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Siemens May Sell Businesses to Boost Share Value: Report

AFX
Friday, 25 May 2007 | 4:03 AM ET

Siemens supervisory board chairman Gerhard Cromme is considering selling some of the company's businesses in a bid to increase share value and thwart any threats of a hostile takeover, Der Tagesspiegel said, citing board sources.

It said Cromme and his newly designated CEO Peter Loescher have even set a medium-term target share price range of 130 euros to 140 euros per share. Siemens is currently trading around the 95 eur0 mark.

The report said Cromme wants the company's ten divisions to be more clearly focused.

"Both (Cromme and Loescher) believe that Siemens is too spread out in its current form," one source was quoted as saying.

The core issue is whether separate businesses would be merged and thereby managed centrally or whether they would be sold.

"I expect that it would be combination of both," one unnamed supervisory board member said.

A Siemens spokesman declined comment to the newspaper but noted that the company has already announced its "Fit for 2010" program which aims to focus the businesses on to three areas -- energy, infrastructure and medical technology.

Meanwhile, Handelsblatt reported, citing head of Siemens' Russian operations Dietrich Moeller, that the company is considering selling its 25% stake, plus one share, in Russian turbine producer Power Machines.

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