Reuters: Mergers News: UPDATE 1-BC Partners gets offers for SGB Starkstrom-sources

Reuters: Mergers News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-BC Partners gets offers for SGB Starkstrom-sources May 31st 2012, 18:55 Thu May 31, 2012 2:55pm EDT * Strategic players submit first-round offers - sources * China's State Grid among bidders - sources * No private equity bids - sources * BC Partners hopes to fetch up to 1 bln euros - sources FRANKFURT, May 31 (Reuters) - Private equity firm BC Partners has attracted first-round offers for SGB Starkstrom, a manufacturer of power transformers, two sources close to the matter told Reuters. BC Partners, which has mandated Goldman Sachs to organize the sale, hopes fetch up to 1 billion euros ($1.24 billion), the sources said on Thursday, adding that more bids could emerge. "If the price is too low, BC Partners won't sell," one of the sources said, adding that the operating performance of SGB was strong and there was no need to rush the divestment process. Among the handful of strategic bidders is China's State Grid , the sources said. No private equity investors have submitted offers, they said. BC Partners and Goldman Sachs declined to comment. State Grid was not immediately available to comment. SGB Starkstrom, a leading manufacturer for electricity power transmission devices, employs roughly 1,300 workers. In 2010, the Regensburg, Germany-based company posted sales of 580 million euros and a net profit of 13 million euros. Originally, SGB Starkstrom was part of Germany's second-biggest utility, RWE. It was sold to private equity group HCP Capital Group in 2004 and then to BC Partners in 2008. BC Partners started the sale process after being asked about the asset by several strategic players, the sources said. While industrial conglomerate Siemens is unlikely to bid due to potential antitrust problems, peer ABB may express interest, they added. Link this Share this Digg this Email Reprints

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