Siemens, Nixdorf to join computer units; plan may spawn other combinations in Europe
Article Abstract:
The proposed merger of Siemens AG and Nixdorf Computer AG may indicate the direction the European computer industry will go in order to survive in the competitive $100 billion market. Europe has been infiltrated with Japanese and American computer manufacturers which control 80 percent of the European market. The merger, calling for Siemens to acquire a 51 percent share in the troubled Nixdorf, comes ten years after an initial attempt at takeover by Siemens. Nixdorf, which specialized in minicomputers, started having financial difficulties in 1988 when that market slumped. The company borrowed money at high rates of interest in an attempt to transform itself into a microcomputer manufacturer. Continuing financial difficulties signaled a need for some solution. The new company will become the largest Europe-based computer company, and the sixth or seventh largest in the world.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Plessey takeover isn't expected to end string of electronics mergers in Europe
Article Abstract:
Great Britain's Plessey Co conceded takeover defeat to General Electric Co of Britain and Siemens AG of Germany, the bidding partners winning 62.1 percent of the company's outstanding shares. But other merger candidates remain in Europe, as electronic industry companies hurry to reorganize their businesses in anticipation of a unified European market after 1992. The consolidation phase is not over yet, as companies in data processing, defense electronics, and other electronic markets put their companies up for sale. Slowing sales, management errors and declining profits have hit some European companies, making potential merger candidates of such companies as Norsk Data AS of Norway, and Nixdorf Computer AG of Germany.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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Zenith Electronics to sell computer unit to France's Bull for up to $635 million
Article Abstract:
Zenith Electronics Corp will sell its computer unit to France's Compagnie des Machines Bull. Zenith currently is the biggest seller of battery operated laptop microcomputers in the US. Bull might pay as much as $635 million. The move is an admission that Zenith does not have the money to compete effectively in the computer business. Zenith will focus on consumer electronics. The purchase doubles the size of Bull's computer business. Zenith's sales, which totaled $1.4 billion in 1988, will make Bull, which is a state-owned organization, into the largest European-based computer company. Zenith stock rose $3.25 on Oct 2, 1989, to $17.75 on the New York Stock Exchange.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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