Sachs Automotive of America (Troy, Michigan, USA), a leading manufacturer of OEM clutches and clutch release bearings, will be spun off early into a new business as a result of a takeover of its parent company.

In February, Mannesmann VDO AG (Germany) was acquired by Vodafone AirTouch PLC, in a battle between the two European telephone titans.

Plans had already been in the works for Mannesmann to split the auto parts businesses from the telephone operations in mid-2001. As a result of the takeover by Vodafone, however, the spinoff has been rescheduled for sometime this year.

VDO North America LLC (Winchester, Virginia), Sachs Automotive of America, Rexroth, Dematic and Demag Kraus-Maffei will all be spun off into a new entity, named Atecs. Atecs' businesses should generate worldwide sales of USD 3.5 billion in 2000.

Details of the IPO will be made public in March or April 2000.