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. Last Updated: 07/27/2016

Report: Siemens Revises Power Bid

Itar-TassSiemens is reportedly aiming for a more modest 25 percent stake in Power Machines after its first bid failed.
Siemens, whose bid for Siloviye Mashiny, or Power Machines, was blocked by regulators, may still increase its stake in the turbine maker to 25 percent from about 4 percent, Vedomosti said, citing unidentified government officials.

The paper quoted senior managers close to the negotiations and Russian officials as saying Siemens was seeking the stake, but both companies declined to comment.

"I think discussions, as before, are about selling a stake in exchange for investment in the company and providing technology. Only based on a new [smaller] share, the money will be less," the paper quoted a Russian official as saying.

Billionaire Vladimir Potanin, whose Interros controls Power Machines, may face opposition to the sale from fellow billionaire Oleg Deripaska, who has also offered to buy the company, the newspaper said, citing an unidentified government official.

Deripaska may want to buy Power Machines and OMZ, Russia's biggest engineering company, to create a larger company, a stake in which may be offered to Siemens, Vedomosti said, citing an unnamed person close to Deripaska's Basic Element.

Siemens first made its bid to buy 73.5 percent in Power Machines, Russia's top producer of electrical engineering equipment, from Interros in July 2004.

The Federal Anti-Monopoly Service barred Siemens' bid last month on the grounds that it would harm competition and compromise the country's military potential, since Power Machines receives many defense orders.

But both Economic Development and Trade Minister German Gref and anti-monopoly service chief Igor Artemyev have made encouraging noises about finding a new format for a deal.

Siemens CEO Klaus Kleinfeld said his company would not give up, noting President Vladimir Putin had assured him his company was a "highly regarded partner for Russian industry."

(Bloomberg, Reuters)