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The interpretation of an article which appeared last week in German financial newspaper, Börsen-Zeitung, suggesting the possibility of a tie-up between press building competitors, KBA and MAN Roland, has been dismissed by KBA as "PR spin" and "having no foundation", whilst also prompting a quick response from MAN Roland. In light of the spin being put on the article, Australian Printer sought clarification from the headquarters of both KBA and MAN Roland.

Dr Bernd Heusinger, Marketing & Public Relations, Koenig & Bauer AG, says, "The headline in the German newspaper Börsen-Zeitung, with the possible tie-up with MAN Roland has no foundation and is a PR spin of this newspaper."

Dr Heusinger went on to provide the following translation of the relevant part of the original interview with KBA President and CEO, Albrecht Bolza-Schünemann which appeared in Börsen-Zeitung last week.

Transcript of Börsen-Zeitung article

Börsen-Zeitung: Mr Bolza-Schünemann, were you pleased or annoyed when MAN Roland, your closest competitor, was taken over by an investment firm?
Albrecht Bolza-Schünemann: Neither nor. We were merely surprised, like all our other competitors.
Börsen-Zeitung: What impact with the sale of MAN Roland have on the sector?
Albrecht Bolza-Schünemann: I can’t yet say.
Börsen-Zeitung: Pricing pressures in the market are likely to increase rather than decrease.
Albrecht Bolza-Schünemann: That is the question. MAN Roland’s sheetfed business has made a loss for many years. I imagine Allianz Capital Partners will exert pressure on MAN Roland to boost returns.
Börsen-Zeitung: If parts of MAN Roland were to be spun off, would you be interested?
Albrecht Bolza-Schünemann: We’ll consider that question if and when it arises. So far we have received no offers. There is a lot of overlap between MAN Roland’s product portfolio and ours, so there would be substantial antitrust hurdles to overcome.
Börsen-Zeitung: Under antitrust laws, what would be the options?
Albrecht Bolza-Schünemann: We are both major players in the newspaper press sector, so there could be no question of even a loose collaboration. Collaboration in sheetfed would be possible from an antitrust perspective because according to our statistics KBA and MAN Roland would have a market share of just over 30 per cent in Germany, compared to Heidelberg’s share of around 40 per cent.
Börsen-Zeitung: So are you already in talks with MAN Roland?
Albrecht Bolza-Schünemann: No.
Börsen-Zeitung: MAN Roland is to be strengthened through acquisitions and alliances prior to its IPO. Would you receptive be for an alliance?
Albrecht Bolza-Schünemann: We are willing to discuss anything. But in the event of an alliance, it would have to made clear precisely who is responsible for what.
Börsen-Zeitung: Would you also be open to an offer from MAN Roland for parts of KBA?
Albrecht Bolza-Schünemann: We have received no such offer. If it were to come, we would certainly scrutinise it. But I think that is unlikely.
Börsen-Zeitung: Is KBA’s three-pronged business strategy – sheetfed offset, commercial web offset and newspaper – set in stone?
Albrecht Bolza-Schünemann: No, in international business nothing is eternal. Sheetfed offset was little more than one of my father’s passions until we made the acquisition in Radebeul 15 years ago. Since then we have pulled level with MAN Roland, and we have no intention of giving up a business in which, during those 15 years, we have invested so much effort and achieved such dynamic growth. And there is absolutely no reason to do so: unlike MAN Roland, we already profitably address a number of niche markets like publication rotogravure and security printing alongside our core markets.
Börsen-Zeitung: So preferably web offset?
Albrecht Bolza-Schünemann: No, not web offset either, because that is our rootstock. I think we should stick with our current strategy of watching out for new openings, and I would immediately consider major acquisitions if the opportunity arose.
Börsen-Zeitung: What sort of volume?
Albrecht Bolza-Schünemann: In the high double-digit millions.
Börsen-Zeitung: Are there any concrete plans?
Albrecht Bolza-Schünemann: No, not at present.

MAN Roland Statement

Meanwhile, Eva Doppler, head of Marketing Communications at MAN Roland Druckmaschinen AG provided this statement.

MAN Roland has received several enquiries in response to Koenig and Bauer AG’s (KBA) chief executive Albrecht Bolza-Schuenemann’s comments published earlier today that KBA would be open to a future relationship with MAN
Roland.

In explaining Allianz Capital Partners’ strategy in acquiring 65 per cent of MAN Roland Druckmaschinen, Thomas Pütter, chairman of Allianz Capital Partners’ management board, clearly stated Allianz’s intention to use MAN Roland as a vehicle of future expansion within the printing industry:

"MAN Roland’s strong market position and excellent product know-how give it a solid base for increasing its growth and playing a significant role in the coming consolidation in this branch. We want to support the company in this important phase of its development and use our expertise as a private equity investor to strategically develop MAN Roland Druckmaschinen."

Although Allianz and MAN AG (who has retained 35 per cent ownership of MAN Roland) intend to expand MAN Roland’s current holdings, it would be premature to speculate whether Koenig & Bauer AG, or any other printing manufacturer, would fit into MAN Roland’s future acquisition plans.