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Schaeffler to limit Continental stake

Schaeffler to limit Continental stake

German auto parts maker Continental AG said Thursday it had ended a weekslong standoff over a takeover bid from smaller rival Schaeffler KG and reached a deal after Schaeffler raised its offer and agreed to limit itself to a minority stake.
Continental had repeatedly rejected the offer Schaeffler made last month. It now says the deal reached with the privately held company offers "an acceptable overall concept."
Continental said in a statement that Schaeffler had agreed to increase its offer price per share to euro75 from euro70.12. Continental did not give an overall value for the new offer, but the previous one was worth about euro11.3 billion.
Schaeffler also agreed to limit its stake to a maximum 49.99 percent for four years, Continental said in the statement.
It also committed itself "to support the ongoing strategy and business policies of Continental AG's management board while maintaining its current market and brand appearance and to not demand a sale of activities or seek other material structural measures," the company added.
Continental CEO Manfred Wennemer and union representatives had voiced fears that Schaeffler might sell the company's tire division if successful in its bid.
Continental said that, following the agreement, Wennemer asked to be relieved of his duties by Aug. 31.
"The supervisory board has agreed to this request with great respect for Wennemer's achievements" as chief executive since 2001, Continental said. "His successor will be appointed in the immediate future."
Continental said that, under the deal, former German Chancellor Gerhard Schroeder would act as a "guarantor for ensuring the interests of all stakeholders of Continental."
Continental makes products including tires, brakes and interiors for cars and trucks.
Schaeffler makes ball bearings for the industrial, aviation, aerospace and the automotive sectors as well as components for engines, transmissions and drive trains.


Updated : 2021-04-11 06:12 GMT+08:00