Insolvent German luxury TV maker Loewe has said it has received a first bid in writing from an investor. It might result in the trade mark surviving the current market storms, but shareholders appeared highly skeptical.
Struggling German TV maker Loewe might escape demise, executives from the Kronach-based company announced Monday. Loewe have chosen not to reveal the identity of the potential investor for the time being, but said it received a concrete offer in writing.
"This is a milestone for us and something that will help us return to the path of success," CEO Matthias Harsch said in a statement.
He added, however, that the bidder was only willing to take over the operational business, without buying the stock company.
Shareholders watch on developments
But that meant bad news for shareholders, who had been hoping for a complete takeover to get a better deal. The mystery bidder's plans would see them waiting on whether creditors left anything for them at all in insolvency proceedings.
Harsch would not be drawn on whether other bidders would appear, after the company spoke of six potential buyers earlier in the month. "Now it's for us to pick the best option," Chief Financial Officer Rolf Rickmeyer said. But he added it would be a process lasting several weeks.
Loewe had been slow in adapting to the flat-screen trend and found its internationalization process advancing very slowly. Many consumers felt the company's prices for high-end TV sets were far too high when compared to the offers made by rivals such as Samsung or LG.
hg/ph (AFP, Reuters, dpa)