LONDON -- Private equity firms have been allowed to enter talks to bid for diesel engine-maker MTU Friedrichshafen, which is being sold for about 1.3 billion euros ($1.57 billion), sources familiar with the situation said on Monday.
More than three suitors, including private equity firms the Carlyle Group and Kohlberg Kravis Roberts as well as private investors, are now in talks to buy the business, although no deal is expected for several months, the sources said.
The news comes after trade bidder MAN pulled out of the talks earlier in July after differences among the business's minority shareholders.
DaimlerChrysler controls roughly 88 percent of MTU Friedrichshafen and has said it wants to sell the unit.
Family shareholders, including Germany's Maybach and Zeppelin families, hold the remaining 12 percent and have a right of veto.
Some shareholders had initially opposed the sale of the business to private equity.
Carlyle earlier in July approached some of the families to lobby for buyout firms to be included in the process, sources familiar with the situation said.
A spokeswoman for Carlyle declined to comment, and no comment was immediately available from KKR.
DaimlerChrysler said it could not confirm whether the MTU Friedrichshafen bidding process was opened to private equity firms, but stressed that it remained interested in disposing of the unit.