SIE.DE - Siemens Aktiengesellschaft

XETRA - XETRA Delayed price. Currency in EUR
103.68
+0.48 (+0.47%)
At close: 5:35PM CEST
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Previous close103.20
Open102.48
Bid103.76 x 44200
Ask103.78 x 100000
Day's range102.42 - 104.68
52-week range84.42 - 108.84
Volume1,931,194
Avg. volume2,254,478
Market cap85.813B
Beta (3Y monthly)0.84
PE ratio (TTM)19.24
EPS (TTM)5.39
Earnings date7 Nov 2019
Forward dividend & yield3.80 (3.73%)
Ex-dividend date2019-01-31
1y target estN/A
  • Should We Be Delighted With Siemens Aktiengesellschaft's (ETR:SIE) ROE Of 10%?
    Simply Wall St.

    Should We Be Delighted With Siemens Aktiengesellschaft's (ETR:SIE) ROE Of 10%?

    Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...

  • SAP’s an Old Company With New Tricks in Battle to Dominate Cloud
    Bloomberg

    SAP’s an Old Company With New Tricks in Battle to Dominate Cloud

    (Bloomberg) -- SAP SE is sticking to its new plan of keeping the company youthful, and top management isn’t being spared.The storied German software giant, Europe’s biggest tech company by market value, has spent the past few years attempting to reinvent itself. It’s working to adapt its corporate software, used by almost all of the world’s 100 most valuable brands, to the web and is taking on younger rivals in cloud-based computing.There’s also been an exodus of company veterans, which as of 12:44 a.m. Friday in Walldorf, included CEO Bill McDermott.Analysts have called the late-night news a surprise; McDermott’s contract doesn’t run out until 2021. He also unveiled a major restructuring plan in April and was expected to brief investors on the company’s strategy next month.But, as he said on a conference call after the announcement, “Ten years is a long time to be CEO.”McDermott, 58, had been with the company since 2002 when he joined as head of its North American business. At the time, he was that unit’s fourth head in three years as SAP struggled to compete with rivals like Oracle Corp., and grappled with a drop in sales of software licenses. Problems with its products were blamed for delayed shipments of Whirlpool Corp.’s appliances and even Hershey’s Halloween chocolates.In the role, he recruited a new management team, changed the way the sales department targeted customers, and ultimately boosted sales growth. When CEO Leo Apotheker unexpectedly resigned in 2010, McDermott and product-development head Jim Snabe were picked to replace him as co-CEOs. Snabe -- currently chairman of Siemens AG -- stepped down and took a spot on the board in 2014, and McDermott became sole head of the company.With nearly 100,000 employees and a sprawling business that generated about $27 billion in revenue last year, driving change has sometimes been controversial. Since 2011, McDermott spent $26 billion on six major cloud acquisitions, and was the main advocate for the $8 billion acquisition of Qualtrics International Inc., the company’s largest-ever deal.Analysts criticized the purchase as too expensive. In November, Qualtrics said it expected revenue for 2018 to exceed $400 million, a figure that wouldn’t move the needle much for SAP. McDermott defended the deal, believing that combining SAP’s sales force and a trove of operational data with Qualtrics’s customer experience feedback would accelerate growth.More recently, the company attracted the interest of activists at Elliott Management Corp., which revealed its 1.2 billion-euro ($1.3 billion) stake when SAP announced a change in strategy in April. SAP had been vague at the time, saying it planned “new initiatives to accelerate operational excellence and value creation” with a focus on “tuck-in” acquisitions.SAP underwent a management shakeup in the weeks preceding the April announcement. The president of its cloud business, 27-year SAP veteran Robert Enslin, had announced his departure earlier that month. It was later revealed he’d left for Google. A day earlier, Chief Technology Officer Bjoern Goerke, another cloud expert based in the U.S., penned a blog post saying he was leaving the company he joined as a student in 1988. Board member Bernd Leukert, a seasoned IT executive, left SAP in February.Personally, McDermott also had to weather a near-fatal accident in 2015 that cost him an eye when he fell down some stairs while carrying a water glass and nearly bled to death.His replacements are a mix of old and new guard at SAP. Christian Klein, 39, spent the past 20 years at SAP, after joining as a student in 1999. Jennifer Morgan, 48, arrived in 2004 and was the first American woman on the company’s executive board. Morgan has been seen as McDermott’s protege, rising relatively quickly through the ranks, and most recently served as the president of the all-important cloud group.Together, Klein and Morgan will have to find a way to compete with younger companies like Salesforce.com Inc. and Workday Inc. while encumbered by a traditional enterprise software business.Cloud is the company’s clear growth engine, with revenue increasing about 32% last year to about 5 billion euros. Sales from its largest business, which helps clients set up and implement SAP’s software, grew less than 1% in 2019.McDermott’s resignation was announced alongside better-than-expected preliminary third-quarter earnings results. New bookings for the company’s cloud products, a key metric that indicates future sales, grew 33% on a constant-currency business. That was more than double the pace set in the second quarter, when disappointed investors sent shares down as much as 10%.“While it is a shock to see Mr. McDermott stepping down, he is clearly handing over the reins of the business from a position of strength and we are encouraged to see that his replacements are long-term members of the SAP executive team,” said Thomas Fitzgerald, fund manager at SAP shareholder Edentree Investment Management, in a note on Friday.\--With assistance from Stefan Nicola.To contact the reporters on this story: Amy Thomson in London at athomson6@bloomberg.net;Kit Rees in London at krees1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Osram Takeover Battle Set for Next Round After AMS Bid Setback
    Bloomberg

    Osram Takeover Battle Set for Next Round After AMS Bid Setback

    (Bloomberg) -- The battle for control of Osram Licht AG is set to enter a new round after Austria’s AMS AG vowed to keep fighting after a sweetened 4 billion euro ($4.4 billion) offer failed.AMS, a supplier to Apple Inc., will seek a regulator nod to raise its 19.99% stake in Osram. As the biggest shareholder in the German lighting maker, AMS’s approval has become key for any would-be rival bidder. Osram has said private equity investors Bain Capital and Advent International are inspecting its books with a plan to make an offer.“We doubt private equity will launch a superior bid given AMS has built up a 19.99% stake in the meantime,” Commerzbank said in a note. “While we cannot rule out that AMS might make another push, timing is yet unclear, so we attach a greater likelihood to a potential cooperation only.”German takeover law doesn’t allow a new bid within one year unless the target gives its consent, as well as stipulating that an offer needs to be made if an investor crosses a 30% ownership threshold. AMS’s pursuit took a setback Friday, when it announced its offer failed to attract enough support from shareholders. Osram investors had tendered only 51.6% of their shares, short of a 62.5% threshold.Osram fell as much as 4.5% to 39 euros, the most in two months, while shares of AMS declined as much as 5.8%.AMS’s failed bid extends a period of protracted uncertainty for Osram, which emerged as a takeover target last year after warning trade friction and a cooling of the car industry had clouded the outlook for 2019. The former division of Siemens AG gets about half of its revenue from the automotive sector. Subsequent profit warnings further eroded investor confidence, sending shares tumbling until the takeover battle took hold.Osram confirmed talks with Bain and Carlyle, which was later replaced by Advent, in February after they were first reported by Bloomberg News. A bidding war broke out in July when AMS lobbed a higher offer. The Austrian company has drawn criticism from Osram unions and employee representatives on the board, as well as management due to concerns about promised synergies as well as the deal’s financing.Following the months-long takeover battle against private equity suitors, AMS said the combination remains compelling and pledged to continue to “explore strategic options” for a takeover. Bain and Advent are inspecting Osram’s books “with a view to submitting an offer,” Osram said in a separate statement.AMS, a supplier of facial recognition technology for Apple’s iPhone, has said it would invest in the company’s Regensburg, Germany site that makes high-tech chip components, but would sell the digital division that makes lighting controls, stage and theater lights.Century-old Osram, based in Munich, started out making light bulbs, pivoting in recent years under Chief Executive Officer Olaf Berlien to products like iris scanners and infrared emitters. The refocus was contentious, leading to a boardroom clash over strategy and a public spat with Siemens before the German engineering giant sold down its stake.To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Tara Patel at tpatel2@bloomberg.net, Elisabeth Behrmann, Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Should You Investigate Siemens Aktiengesellschaft (ETR:SIE) At €96.63?
    Simply Wall St.

    Should You Investigate Siemens Aktiengesellschaft (ETR:SIE) At €96.63?

    Siemens Aktiengesellschaft (ETR:SIE) saw a double-digit share price rise of over 10% in the past couple of months on...

  • Reuters - UK Focus

    LIVE MARKETS-German climate plan: is that fiscal stimulus?

    * European shares fall after disappointing PMIs * STOXX 600 down 0.8%, DAX hits lowest in 2 weeks * Euro zone business growth stalls in September * Investors wait for clarity on Sino-US talks * Travel sector stocks gain after Thomas Cook collapses Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: danilo.masoni.thomsonreuters.com@reuters.net GERMAN CLIMATE PLAN: IS THAT FISCAL STIMULUS? "The macro impact from the climate spending package seems limited - this is not a proper fiscal stimulus," say UBS economists led by Felix Huefner.

  • Reuters - UK Focus

    UPDATE 2-E.ON to tackle Npower after EU clears Innogy takeover

    ESSEN, Germany/BRUSSELS, Sept 17 (Reuters) - E.ON will move quickly to address problems at Npower, the loss-making British retail business it is taking over after European regulators approved its purchase of assets from peer Innogy , the German energy group's CEO said on Tuesday. "(Npower) is an open wound which bleeds heavily," Johannes Teyssen told journalists. The approval seals the fate of Innogy, which was carved out from RWE and listed three years ago as a separate entity, with its assets being taken over by its parent and E.ON.

  • Osram Feeds Union Anger After Backing $4.1 Billion AMS Offer
    Bloomberg

    Osram Feeds Union Anger After Backing $4.1 Billion AMS Offer

    (Bloomberg) -- Osram Licht AG recommended a 3.7 billion-euro ($4.1 billion) takeover bid from AMS AG on the basis of price, risking a backlash from labor groups worried about potential job cuts that may come with the deal.The terms of AMS’s 38.50 euro-a share proposal eclipse Osram’s lingering concerns about how the takeover will be funded, the German lighting maker said in a statement on Monday. The Munich-based former Siemens AG unit had previously backed a lower offer from private equity groups Bain Capital and Carlyle Group LP.The show of support for AMS gives the Austrian sensor maker a boost in a months-long battle for Osram, which came into play after a series of profit warnings more than halved its share price over the course of a year. Bain and Carlyle are considering increasing their 3.4 billion-euro offer, people familiar with the matter said last month, which could switch the initiative back their way.Osram said differences remain with ASM over “some important strategic elements” that require further discussion, though that may not be enough to appease unions and employee representatives, who make up half of Osram’s supervisory board. They have questioned AMS’s planned savings from the deal, saying they would lead to job losses and facility closures in Germany.“The decision today was made against the wishes of the employee representatives,” said Johann Horn, leader of the IG Metall Bayern. “Even the management board is not convinced of the concept that AMS has tabled.”AMS Chief Executive Officer Alexander Everke defended his company’s credentials, saying its “commitments are the same if not better than that of Bain and Carlyle.” Osram shares traded 0.5% higher at 37.70 euros per share as of 10:24 a.m. in Frankfurt, while AMS declined as much as 4.9% in Zurich.Investor SupportMeetings between AMS and its investors across Europe, the U.S. and Asia over the last two weeks revealed “strong support” for its plan to buy Osram, AMS said in a separate statement on Monday. It reduced the minimum acceptance rate for its offer to 62.5% from 70%, though won’t be able to count on Osram CEO Olaf Berlien, who will not tender his personal stock.AMS shareholders still need to approve a capital raise to finance the transaction that will increase debt, but that “will be reduced to where it was before the deal within two years,” Everke said.The bidding war began in July, when AMS offered to counter a bid from Bain and Carlyle. AMS’s proposal was cleared last week by the country’s financial watchdog, allowing offers to remain open until Oct. 1.(Adds union comment in fifth paragraph. A previous version of this story corrected to say Osram recommended, not rejected, the offer by AMS.)To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John Bowker, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Siemens, Orascom sign deal to rebuild Iraq power plant
    Reuters

    Siemens, Orascom sign deal to rebuild Iraq power plant

    Siemens and Orascom Construction signed an agreement on Saturday with the Iraqi government to rebuild two power plants in the north of the country that will have a combined capacity of 1.6 gigawatts. Siemens said that work at the Baiji facility, 250 km (155 miles) north of Baghdad, will commence once Iraq's Council of Ministers approve the deal and a financial agreement is reached with the Finance Ministry. Iraq signed five-year "roadmap" agreements with GE and Siemens AG last October under which the country plans to spend about $14 billion (£11.20 billion) on new plants, repairs, power lines and, eventually, equipment to capture for use natural gas that is now being flared off.

  • Siemens executive Sen favourite to lead new standalone energy business
    Reuters

    Siemens executive Sen favourite to lead new standalone energy business

    ZURICH/MUNICH (Reuters) - Siemens board member Michael Sen is the favourite to lead its new standalone energy business, sources have told Reuters, removing one of the frontrunners from the race to succeed Joe Kaeser as head of the German industrial company. Sen is in pole position when the supervisory board of the Munich-based company meets on Wednesday to decide who will lead the business it is spinning off and floating, two people familiar with the matter told Reuters. The move could clear the way for Siemens Chief Operating Officer Roland Busch to lead the trains to industrial software company when Chief Executive Kaeser steps down.

  • Siemens plans to list energy unit by around September next year - executive
    Reuters

    Siemens plans to list energy unit by around September next year - executive

    Siemens plans to list its energy unit by around September next year, the head of its gas and power division said on Tuesday. The German conglomerate said in May that it was spinning off its gas and power business, which has dragged on the German engineering firm's performance as the rise of renewable power hits demand for gas turbines. "We are very excited about what the company will have in its portfolio and then for the company to be a separate listed entity next year about this time will allow it to be very independent and very focused on the energy market,” Lisa Davis, CEO of the unit, told Reuters on the sidelines of an energy conference in Abu Dhabi on Tuesday.

  • Margrethe Vestager, Silicon Valley’s Worst Enemy, Returns With Even More Power
    Bloomberg

    Margrethe Vestager, Silicon Valley’s Worst Enemy, Returns With Even More Power

    (Bloomberg) -- The regulator who’s made a name for herself by cracking down on tech giants is about to get even more power.Margrethe Vestager was picked Tuesday by EU Commission President-elect Ursula von der Leyen to be her executive vice president in charge of the bloc’s digital affairs –- a post that will hand the Dane oversight of issues relating to artificial intelligence, big data, innovation and cybersecurity.Even more concerning for those hoping to avoid billion-dollar fines, Vestager, 51, will also keep her job as one of the most feared antitrust regulators. She squeezed huge penalties out of Apple Inc. and Google, rousing wrathful tweets from U.S. President Donald Trump. Washington’s ire only raised her own profile, making her a close-run candidate to head the EU commission and landing her with a potentially powerful role as vice president in charge of digital policy.Silicon Valley firms probably have the sense of “better the devil you know” when they see Vestager return for another five years, said Pablo Ibanez Colomo, a law professor at the London School of Economics. “They know pretty much where she comes from and know her style” of strict enforcement.While the Dane dealt coolly with criticism, claiming she didn’t deliberately target tech companies for antitrust and tax cases, she often shied away from attempts to settle investigations without fines. Being resolute won her admiration but also sparked irritation in Paris and Berlin when she blocked the Siemens AG and Alstom SA rail deal they favored. She’s spent the last few months trying to sell herself as a politician prepared to act on fears that Europe is being left behind by China and the U.S., especially on technology.One of her first acts after taking office in 2014 was to start up a stalled Google investigation that her predecessor had come under fire for trying to settle. The Alphabet Inc. unit had to hand over 8.2 billion euros ($9.1 billion) in fines for three probes, make changes that saw it start charging for its Android phone software in Europe and alter shopping ads. It still faces the risk of more fines from fresh investigations and complaints it isn’t complying with existing antitrust orders.Vestager’s new post lets her move beyond the limits of antitrust enforcement, often criticized for ordering too few changes too late to help less powerful rivals. She’s paid close attention to how internet platforms host smaller companies they also compete with, an issue for Amazon.com Inc. in a probe the EU opened in July and also the subject of complaints targeting Apple Inc. and Google.Her work is “not an attack on businesses, this is an attempt for democracy to shape our society,” she told reporters on Tuesday. She described her new role as helping to plug gaps identified by antitrust investigations, pointing to recent rules that allow small companies to get answers from internet platforms if they think they are being treated unfairly. The measures appear to target issues raised by the EU’s Google probes.“That is a kind of regulation that you might see more of,” she said. “We had the insight from the specific cases but that insight will also lead you to consider more regulation.”Vestager will take over as digital chief at a time when the European Commission is coordinating the bloc’s 5G security, grappling with what role Huawei Technologies Co. should play in the build-out of the infrastructure, as the U.S. urges Europe to block the Chinese telecom giant in spite of the risks posed by angering an important trade partner.France’s Sylvie Goulard, picked as internal market commissioner, will work more directly on defining standards for 5G mobile and next-generation networks, cybersecurity rules and response strategies, along with leading industrial and defense policy.Von der Leyen told Vestager to coordinate work on an EU approach on the ethical implications of AI within the first 100 days of the mandate and look at ways to share non-personal big data. She must also coordinate work to find international agreement on a tax on digital companies by the end of 2020 or to propose a fair European levy. And to deal with fears that China unfairly undercuts European firms, she has been told to tackle the distortion of foreign state ownership and subsidies.Vestager and other commission nominees face hearings in early October at the European Parliament before lawmakers vote on their posts.“She will be very positively seen and she’s intelligent and smart enough” to win over lawmakers, said Andreas Schwab, a German member of the parliament.(Adds comments from law professor and Vestager starting in fourth paragraph.)\--With assistance from Lyubov Pronina.To contact the reporters on this story: Aoife White in Brussels at awhite62@bloomberg.net;Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Peter ChapmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • The Elevator Market Is Being Cornered
    Bloomberg

    The Elevator Market Is Being Cornered

    (Bloomberg Opinion) -- Ever since humans first rode in an elevator more than a century ago we’ve been afraid of getting stuck in one (or worse). The related requirement that these modern marvels are serviced and upgraded regularly is pretty handy for industry leaders Otis, Kone Oyj, Schindler and Thyssenkrupp AG. The companies generate about half their elevator revenues this way, as opposed to the lower-margin sales of original equipment.In good years Otis and Kone have achieved an operating return on sales in excess of 14%. That’s decent for the industrial sector, although a competitive Chinese market has made things more difficult lately.Tough safety regulations and the need to support big teams of technicians are a natural defense against new competitors. The four companies I mentioned have locked up more than 60 percent of the elevator market. Three of them are European.(1)The decent profitability and oligopolistic industry structure are big attractions for would-be acquirers of Thyssenkrupp’s elevator unit, which the German conglomerate has put up for sale. But the big four’s dominance won’t have gone unnoticed by antitrust officials, who could play a central role in determining how any further consolidation plays out.Depending on the bidder, any political desire to build a European elevator champion may run into resistance from those who fear entrenching the power of already dominant companies (as happened when Germany’s Siemens AG and France’s Alstom SA tried to merge their rail businesses).Thyssenkrupp isn’t the only active player in the industry. United Technologies Corp.’s move to spin out its Otis elevator unit has triggered speculation that the U.S. manufacturer might also get involved in M&A. Last week, Switzerland’s Schindler denied a report that it had been targeted by its American rival. Finland’s Kone, meanwhile, is open about wanting to buy the Thyssenkrupp business, telling the Handelsblatt newspaper last week that the two companies would be “a perfect fit.”Combining Kone and the Thyssenkrupp unit would create an industry behemoth with more than 16 billion euros ($17.7 billion) of sales. Though weaker than Kone’s, Thyssenkrupp’s elevator earnings have tended to far outstrip what the unwieldy German conglomerate makes from its other businesses. Its future should be bright too.Urbanization, aging populations and more single-person households are all spurring the construction of denser, taller residential buildings, especially in Asia. China accounts for more than 60% of the world’s new elevator installations.It’s reasonable to think the Thyssenkrupp elevator business would be worth about 15 billion euros if carved out – double the value investors ascribe to the whole conglomerate today. Add a premium for potential synergies and the value could rise further. Kone and Thyssenkrupp would complement each other well: the former is stronger in China while the latter has a bigger U.S. business. And the potential procurement, research and labor force savings from a merger would surely beat any earnings improvements that a private equity buyer could deliver by itself.The big question is whether antitrust officials would agree to two of the big four elevator firms merging? It’s barely a decade since the European Union smacked the companies with almost 1 billion euros in fines for running a price-fixing cartel in several countries. Company employees rigged bids involving hospitals, the European Commision noted. Hardly a good precedent.Thyssenkrupp is burning cash and its stock has fallen more than 35% in the past year. It can ill afford to get involved in another protracted and ultimately unsuccessful antitrust review. Earlier this year Brussels blocked an attempt to combine its European steel operations with Tata Steel. Kone could sell certain assets to ease competition concerns. Still, it’s understandable that Thyssenkrupp is said to favor a partial sale to private equity, according to Bloomberg News’s Aaron Kirchfeld and colleagues. This might not realize the highest price but it’s surely the easier deal to pull off, provided trade unions can be reassured.Europe has three world-beating elevator makers. Reducing the trio to two has clear benefits for the companies. What’s in it for customers isn’t quite so obvious. (1) The maintenance business is more fragmented, however.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Is Siemens a Buy?
    Motley Fool

    Is Siemens a Buy?

    The German industrial giant is worth a close look from dividend-loving investors.

  • Russia's Rostec sells stake in firm hit by sanctions over turbines scandal
    Reuters

    Russia's Rostec sells stake in firm hit by sanctions over turbines scandal

    Russian conglomerate Rostec has sold its stake in a sanctioned technology company that was embroiled in a scandal over the installation in annexed Crimea of turbines made by Germany's Siemens , Rostec told Reuters on Thursday. The 17.34% stake in Interavtomatika was sold by Rostec unit Tekhnopromexport in June to a Russian research institute for 67 million roubles ($1 million), a filing at the state bankruptcy registry showed.

  • The Key Takeaway From Siemens' Earnings
    Motley Fool

    The Key Takeaway From Siemens' Earnings

    There's more evidence of a slowdown in industrial conditions -- and the German company's U.S. competitors are feeling it, too.

  • Bloomberg

    The EU’s Next Bad Idea? A So-Called Sovereign Wealth Fund

    (Bloomberg Opinion) -- If you are searching for the EU’s next bad idea, look no further than the “European Future Fund.” The 100 billion euro ($110 billion) pot, first reported in Politico, would be a way to boost strategic sectors which are seen as lagging behind China and the U.S.It’s not a formal policy plan, and the details are still scanty. But Ursula von der Leyen, the incoming president of the European Commission, would be wise to ignore the proposal. Europe needs to pool resources in other areas, starting, for example, with a fund to help euro-zone member states stabilize their economies when they face shocks. It’s best to leave most of industrial policy to national governments, making sure they do so fairly.The “European Future Fund” has been dubbed a sovereign wealth fund – except that it isn’t. The EU is not a sovereign state and will not become one for the foreseeable future. The EU would not be tapping any existing “wealth” or natural resources.  A sovereign wealth fund like Norway’s – which uses income generated by its oil and gas reserves – is a way to ensure that such riches are not wasted on current spending, but invested to guarantee future prosperity.  The EU would simply be using existing budget resources to create such a fund in the hope of attracting money from the private sector.Any help for Europe’s so-called strategic sectors should be handled with care. There is merit in launching joint R&D initiatives, such as the partnership France and Germany have set up to develop electric car batteries. But it is less clear why the EU should intervene to stop takeovers of individual firms by foreign companies, which seems to be at least one of the reasons to set up this fund. Does the Commission have the ability to manage a stake in a fast-growing tech firm? With what objectives? At what price will the acquisition take place? The risk is that fewer European start-ups will grow if they fear they can’t be sold to a deep-pocketed foreign rival. Take no offense, but Google can be a much more attractive buyer than any “European Future Fund.”The Commission is going at the problem the wrong way. Several member states – France and Germany in particular – have decided that the reason why Europe is not fertile ground for innovation is that companies are not allowed to develop to an adequate size to compete with rivals from China and Silicon Valley. They argue that competition policy needs updating, which is really a polite way to say it needs to be watered down. This argument is misplaced in several ways. Economic studies have found no direct relationship between how large and how innovative a business is. Moreover, the Commission rarely blocks mergers between companies that operate in similar industries. If a state wants to step in and buy a company at its market price and manage it in a competitive manner, there is no reason why it can’t.Margrethe Vestager, the EU’s departing competition commissioner, has offered some meaningful resistance to this Franco-German push, for example blocking the rail merger between Alstom SA and Siemens AG. But it’s unclear that any new commissioner, assuming she moves on to another role, will be as combative. The EU needs a strong enforcer of competition more than any lofty new fund.To contact the author of this story: Ferdinando Giugliano at fgiugliano@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Ferdinando Giugliano writes columns on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • AMS Ignites Battle for Osram With $4.1 Billion Rival Offer
    Bloomberg

    AMS Ignites Battle for Osram With $4.1 Billion Rival Offer

    (Bloomberg) -- AMS AG re-entered the battle for Osram Licht AG with a 3.7 billion euros ($4.1 billion) offer, days after a major shareholder rejected a lower bid by rivals for the German light and sensor maker.Osram soared as much as 11% Monday, following the weekend approach from AMS that values the target at 38.50 euros a share. That compares with the 35 euros-a-share from private-equity firms Bain Capital and Carlyle Group, thrown into jeopardy last week when top investor, Allianz Global Investors, rejected it as too low.The new offer is in line with an earlier bid that Austrian sensor maker AMS mooted but then withdrew almost a month ago.Osram “raised valid concerns in the past, and I think with the offer we provided them yesterday, we answered all their concerns,” AMS Chief Executive Officer Alexander Everke said in a call with reporters on Monday. “We have been looking at Osram for a long time.”AMS shares fell 8.7% in Zurich. Osram traded at 35.09 euros as of 9:07 a.m. in Frankfurt.AMS is in regular contact with investors, including Allianz, Everke said on the call. Allianz is a shareholder of both companies, holding about 0.38% in AMS and 9.3% of Osram, according to data compiled by Bloomberg.Osram became a takeover target after a series of profit warnings and a public spat over strategy with Siemens AG, which spun off the division in 2013. Its earnings have suffered because of the company’s exposure to the automotive industry, which accounts for over half of its revenue.Carmakers and suppliers are grappling with shrinking demand in China and Europe and the expensive transition to electric cars. Investors also lost confidence in the ability of CEO Olaf Berlien and management to turn the company around. The stock has lost more than half its value since peaking in early 2018.“This counter bid will test how keen the private-equity consortium is for the Osram asset as AMS has now secured financing to offer 10% more per share,” Morgan Stanley analyst Lucie Carrier said in a note.If AMS were successful in its takeover attempt, it would sell off Osram’s digital division that makes lighting controls for use in horticultural and medical systems, among others. The company would also not touch Osram’s collective bargaining agreements for five years, according to the statement.(Updates with AMS CEO comment in sixth paragraph)\--With assistance from Eyk Henning.To contact the reporter on this story: Oliver Sachgau in Munich at osachgau@bloomberg.netTo contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John BowkerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • (CVRS) Q2 2019 Earnings Call Transcript
    Motley Fool

    (CVRS) Q2 2019 Earnings Call Transcript

    CVRS earnings call for the period ending June 30, 2019.

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