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Knorr said Bosch, the privately held auto components business,
accuses it of competing in truck steering systems in violation
of agreements between the two companies, according to a copy of
the issue prospectus seen by Reuters.
Bosch therefore wishes to exit a joint venture by exercising an
option to sell its 20 percent stake back to Knorr for 380
million euros. It has invoked arbitration proceedings in a bid
to complete the sale, the prospectus adds.
Knorr disputes that Bosch has the right to exercise the option.
"We will resolutely defend ourselves against such demands," the
company said in the prospectus.
Knorr has bundled most of its European operations into the joint
venture, which is called Knorr Bremse Systeme für Nutzfahrzeuge
GmbH.
It was not immediately clear whether the dispute would affect
Knorr's initial public offering, which was confirmed on Friday
when the company said it would issue shares on behalf of owners
Heinz Hermann Thiele and his family.
The share offering, which begins on Monday, has been priced at
72 to 87 euros apiece, valuing Knorr at between 11.6 and 14
billion euros. If completed, it would be the largest stock
market listing by a German company this year and would leave
Knorr with a free float of up to 30 percent.
Bosch said in response to a Reuters inquiry that it had decided
to conduct a "thorough review" of its investment in the joint
venture, citing differences over future strategy.
Bosch declined to give further details on the dispute.
(Reporting by Alexander Huebner; Writing by Douglas Busvine;
Editing by Mark Potter)
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