Siemens "buy"

18.07.07 - Dresdner Kleinwort Wasser.

LONDON, July 18 (newratings.com) - Analysts at Dresdner Kleinwort maintain their "buy" rating on Siemens AG (SIE-EUR). The target price is set to ?125.

In a research note published this morning, the analysts mention that Dow Newswires has indicated that Siemens has received offers for VDO, which is scheduled to be divested either through a sell-off or an IPO in 2007, from Continental and TRW-Blackstone for at ?11 billion and ?12 billion, respectively. The company?s management has indicated that it would decide on the mode of divestiture based upon the alternative that is more accretive to shareholders. Siemens is likely to favour a sale to Continental on account of union concerns surrounding job reductions, Dresdner Kleinwort adds.