FRANKFURT -- German truckmaker and industrial group MAN has re-entered talks to acquire DaimlerChrysler's MTU Friedrichshafen heavy diesel engine unit, DaimlerChrysler said on Monday.
Confirming an earlier report by Reuters, a spokeswoman for the world's fifth-biggest carmaker said MAN had replaced buyout firm CVC, which had dropped out of the list of bidders.
"MAN is back in for competitive reasons so that we have three bidders," the spokeswoman said.
The other two remaining bidders are buyout firm Kohlberg Kravis Roberts and rival Swedish group EQT.
German newspaper Stuttgarter Zeitung reported that Dubai International Capital had joined KKR's bid, but DaimlerChrysler would not confirm this.
MAN had no immediate comment.
Daimler and MAN had said in mid-October that they had ceased negotiations over MTU, which DaimlerChrysler has said is worth more than 1 billion euros ($1.21 billion). Sources involved in the process said MAN had offered 1.1 billion for MTU.
German media reports have put the price at around 1.7 billion euros including some other motor businesses from other DaimlerChrysler units.
The divestment is seen as a key part of Daimler's plans to finance planned job reductions via voluntary redundancies -- costing 950 million euros -- at its Mercedes Car Group division in Germany where it wants to cut up to 8,500 jobs.