German auto parts group Schaeffer bids for rival Continental
The German auto and aerospace parts company Schaeffler Group launched on Tuesday an offer for its much larger German rival Continental but said it was not necessarily seeking a majority stake.
By Agencies |
FRANKFURT : The German auto and aerospace parts company Schaeffler Group launched on Tuesday an offer for its much larger German rival Continental but said it was not necessarily seeking a majority stake.
Schaeffler offered 69.37 euros (102 dollars) per share, a statement said, "or -- if higher -- the minimum offer price as determined by the Federal Supervisory Authority for Financial Services."
The price offered corresponded to the weighted average share price over the past three months "and is thus viewed as fair consideration" of their value, Schaeffler added.
Schaeffler "is seeking to acquire a strategic shareholding of more than 30 percent in Continental but not necessarily a majority stake," it said.
It currently owned 2.97 per cent of the shares in Continental, the world's fifth largest auto parts group, and had already secured access to a significant amount of additional shares.
Schaeffler, a family-owned group, said it would support Continental's business strategy and that Continental would continue to operate as a stand-alone, listed company.
"No jobs would be lost in conjunction with the transaction," it said, adding that financing "for the purchase of all shares has been secured in the full amount."
The two groups were "ideal complements to one another" because Schaeffler was strong in powertrain components while Continental focused on electronic and software systems for engines, chassis and interiors, it said.
Last year, Schaeffler posted sales of 8.9 bn euros, almost three times less than Continental's 2008 target of 26.4 billion.
Under German regulations, any company acquiring 30 per cent in another must launch a general offer for all the outstanding shares, allowing other shareholders the opportunity to cash out if they so wish.
Shares in Continental were 12.08 per cent higher at 73.35 euros in late Frankfurt trade while the Dax index was down 1.72 per cent.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
