UPDATE 1-Chinese companies among three likely bidders for Emerson's Leroy-Somer -sources
* Buyout group CD&D and Chinese groups to bid -sources
* One CD&D partner held senior position at Emerson
* Wolong latest in slew if Chinese groups eyeing Europe (Adds detail on private equity bidder, European deals by Chinese groups)
By Arno Schuetze and Gilles Guillaume
FRANKFURT/PARIS, July 8 (Reuters) - Emerson Electric's alternator business Leroy-Somer is expected to attract firm offers from two Chinese companies and a buyout group in a potential 1 billion euro ($1.1 bln) deal, people close to the matter said.
Private equity group Clayton Dubilier & Rice (CD&R), as well as Wolong Electric and another Chinese company are conducting due diligence on Leroy-Somer and preparing to submit final bids this month, the sources said.
Emerson wants to focus its business on process automation and heating and air conditioning. In April it launched the sale of its Motors and Drives unit, which consists mainly of Leroy- Somer which makes alternators for power producers and industrial applications. It aims to chose a buyer before the August summer break, one of the sources said.
CD&R declined to comment, while Emerson and Wolong were not immediately available for comment.
Strategic buyers often have an edge over private equity groups in such acquisitions as they are usually able to reap cost savings from combining their own with the acquired business. Continuación...