Takeover rumours boost German auto parts group Continental
Shares in German auto parts company Continental shot up in early trading on Monday on reports it could be taken over by the family-owned Schaeffler group.
By Agencies |
FRANKFURT: Shares in German auto parts company Continental shot up in early trading on Monday on reports it could be taken over by the family-owned Schaeffler group.
Continental shares showed a gain of 25.02 per cent to 67.46 euros on the Frankfurt stock exchange, while the Dax index of German blue-chips was up by 1.21 per cent overall.
Continental said in a statement that "one brief conversation about a possible engagement by Schaeffler Group in Continental took place at the end of last week," and added: "No further conversations took place."
Schaeffler wants to buy Continental and is ready to pay more than 10 billion euros (about 16 billion dollars), media reports said over the weekend.
The statement said that "as soon as Schaeffler Group has substantiated its plans," Continental managment would "evaluate these and communicate its views."
The auto parts maker has lost roughly half of its stock market value in the past year, falling below nine billion euros on Friday.
A study by Merrill Lynch pushed the share price lower last week, saying that Continental was penalised by heavy debt and high costs for raw materials.
Continental shares showed a gain of 25.02 per cent to 67.46 euros on the Frankfurt stock exchange, while the Dax index of German blue-chips was up by 1.21 per cent overall.
Continental said in a statement that "one brief conversation about a possible engagement by Schaeffler Group in Continental took place at the end of last week," and added: "No further conversations took place."
Schaeffler wants to buy Continental and is ready to pay more than 10 billion euros (about 16 billion dollars), media reports said over the weekend.
The statement said that "as soon as Schaeffler Group has substantiated its plans," Continental managment would "evaluate these and communicate its views."
The auto parts maker has lost roughly half of its stock market value in the past year, falling below nine billion euros on Friday.
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A study by Merrill Lynch pushed the share price lower last week, saying that Continental was penalised by heavy debt and high costs for raw materials.
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