West German steel pipes manufacturer Mannesmann AG, which has just won the franchise to construct and operate West Germany’s second cellular telephone network, is the right partner to rescue struggling Nixdorf Computer AG, the great and the good in Bonn and at the Deutsche Bank have decided. Although no-one would give any details of the arrangements, Mannesmann has called a meeting of its managers today, which is believed to be for the purpose of briefing them on the acquisition. Nixdorf has a board meeting scheduled for January 22, an employees’ meeting for the following day, and a press conference on January 24, but it is unlikely that the news can be kept under wraps until then. The original plan is said to have been for Mannesmann to take 60% of Nixdorf and Siemens AG 40%, but as the plan will clearly lead to a merger of the Paderborner with Mannesmann-Kienzle, and it is Mannesmann-Kienzle that has won the cellular licence, the West German government is said to have been unhappy at the prospect of Siemens having any involvement in that. Although Nixdorf has only non-voting preference shares in public hands, it is not in a strong enough financial condition to make dividend payements painlessly, and after two years of no dividends, the shares acquire votes.
