Continental Rejects Bid from Rival Schaeffler - For Now
Resource from: CBCC Likes:2934
Jul 28,2008
Continental, the German tyre and car parts maker, rejected a Eur 11.3 billion (£9 billion) bid yesterday from Schaeffler, the world's biggest manufacturer of ball bearings.
However, the board of Continental, which is three times bigger than Schaeffler, said that an agreement with its rival was desirable. The board said that Schaeffler must consider either a higher bid, which would offer a premium to shareholders, or be willing to limit its holding in Continental to “an acceptable level for Continental”.
Schaeffler, which is a private, family controlled business, made its move on Continental last week, launching a takeover bid and taking a 36 per cent stake.
A takeover of Continental would mark a massive consolidation in the German automotive industry as the car market is braced for continued tough times and components makers have been hit by sharp rises in the costs of raw materials.
Continental's share price has suffered continued falls since its purchase last year of VDO, Siemens' car parts business, which makes electronic and electrical components. Continental took on more than Eur 10 billion in debt after the Eur 11.4 billion purchase of VDO.
Schaeffler is owned by Maria-Elisabeth Schaeffler and her son Georg, who together were ranked 78th in last year's Forbes rich list with an estimated net worth of $8.7 billion.
Yesterday, Volkswagen, the biggest customer of both companies, said that it viewed Schaeffler's move as positive but it wanted to see a quick resolution to the takeover approach.
Europe's largest carmaker said that it did not want Continental to be broken up by its rival. Hans Dieter Poetsch, VW's chief financial officer, said: “We do view the approach of Schaeffler in principle as positive, under the framework conditions that we are not entering into a long battle, which at least would potentially carry the risk of deteriorating the operating business [of both companies].”
()
【CBCC News Statement】
1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
BRIEF INTRODUCTION
Cnbearing is the No.1 bearing inquiry system and information service in China, dedicated to helping all bearing users and sellers throughout the world.
Cnbearing is supported by China National Bearing Industry Association, whose operation online is charged by China Bearing Unisun Tech. Co., Ltd.
China Bearing Unisun Tech. Co., Ltd owns all the rights. Since 2000, over 3,000 companies have been registered and enjoyed the company' s complete skillful service, which ranking many aspects in bearing industry at home and abroad with the most authority practical devices in China.
