Buying batteries

DB Investor, a fully-owned subsidiary of Deutsche Bank AG, has submitted a public takeover bid for Varta AG. The bid will be implemented through GOPLA, a fully-owned subsidiary of DB Investor, and is valid until 11 December 2000.

The Executive Board of VARTA AG has welcomed the bid. It has said that the main markets in which Varta operates are currently undergoing radical changes which demand intensified efforts from the companies involved in the form of substantial investments in battery technologies of the future.

Dr. Georg Prilhofer, Chairman of the Executive Board of Varta AG said: ‘that significant profit improvements can only be anticipated in the long-term, once research and development activities have been successfully implemented. We want to seize the opportunities in connection with future technological advances. That entails a high level of additional investment. With the company’s present structure this would mean a sizeable increase in the financial burden on Varta AG.

The continuous improvement in operating profits achieved by the Varta Group over the past few years has not been reflected in a corresponding increase in the share price. In consideration of this share performance, the Executive Board cannot see an attractive financing alternative for the planned investments through the capital market.’

The price of 14.50 Euro per share is well above the closing price of Varta shares on 3 November 2000 and exceeds the average share price over the past six months. ‘It will enable our shareholders to sell their shares at an attractive price,’ explains Walther Wever, Executive Board Member of VARTA AG. ‘The bid at the same time safeguards and protects the interests of the company, our employees and customers, particularly in view of the investments in new battery technologies.’

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