Siemens SA is bidding to become a force to be reckoned with in the telecommunications field in Spain. The recent purchase of a 90% stake in Madrid-based Grupo SDI SA (CI No 2,843) should be interpreted as a key move in Siemens’ strategy to extend its influence in a sector which yielded the Spanish subsidiary $84.8m in 1995, 46% more than in 1994. SDI, which specializes in business networks for data, voice and video transmission, turned over $33.6m in 1995. Siemens SA vice-president Eduardo Montes declared that through this acquisition the company seeks to gain a foothold in the corporate network market in Spain and approach annual turnover of some $65m in this particular niche within a few years. He also believes the move will enhance Siemens’ position in South and Central American markets. The company is further encouraged by the fact that it already has an agreement signed with the cellular operator Airtel, whereby it is the latter’s number two supplier of telecommunications infrastructure (after L M Ericsson Telefon AB). Montes said Siemens’ investment in telecommunications-related activities would total just under $100m in 1996, while the company hopes to more than triple current turnover by the end of 1998.
Letter of intent
Nevertheless, Siemens’ negotiations with Spanish telecommunications group Amper SA are encountering one or two problems, El Pais reports. Last July the two parties signed a letter of intent for Siemens to take a 66% stake, Amper the other 34% in a new telecommunications company to incorporate Amper Telematica, the terminal, answering machine and exchange specialist. However, Amper’s mood appears to have shifted somewhat after buoyant corporate results for 1995, which reveal profits rising to $23m. Siemens was also due to take a 51% stake in public telephone manufacturer Amper Elasa, but this subsidiary is proving to be one of Amper’s most successful, yielding profits of $16.4m in 1995 and showing excellent prospects of future growth. Furthermore, the trades unions have voiced concern about the development of the negotiations; their main fear is that Amper Telematica will be the focus of Siemens’ restructuring plans if close union with the German company goes ahead.
