Yantai drops bid for German toolmaker Leifeld, anticipating veto

BERLIN, Aug 1 (Reuters) - The main owner of German toolmaker Leifeld told Reuters that China’s Yantai Taihai had dropped its attempt to buy the company ahead of an expected veto by the German government, and that he now planned to float a majority stake in the company this year.

“The bidder has withdrawn his request to the economy ministry for authorisation,” largest shareholder Georg Kofler told Reuters on Wednesday. “The board and management now plan to bring the company to the market this year.”

The decision came hours before the government had been expected to veto the planned acquisition out of concern at the security implications of allowing a takeover of a company with extensive interests in the nuclear power business. (Reporting by Gernot Heller, writing by Thomas Escritt, editing by Joseph Nasr)