Schaeffler ups takeover bid for Continental to 70.12 euros
Herzogenaurach, Germany - Privately owned German ball- bearing manufacturer Schaeffler increased Monday its unsolicited takeover offer for its larger listed competitor Continental to 70.12 euros per share.
Schaeffler, controlled by widow Maria-Elisabeth Schaeffler, 66, and her son, stunned Germany a week ago with the bid for brake and tyremaker Continental and plans to combine the two auto-industry suppliers.
At its offices in Herzogenaurach, Schaeffler said it was now officially offering 70.12 euros per share after being advised by German financial market regulator BaFin that it must at least offer the three-month average of Continental's share price.
A Schaeffler offer last week of 69.37 euros cash was disparaged by Continental management as not reflecting the group's full value. It would have valued Continental at
11.2 billion euros (18 billion dollars).
Hanover-based Continental is nearly three times the size of Schaeffler Group.
However, a slump in the car industry combined with an 11-billion- euro acquisition last year has helped to drive down Continental's shares, leaving the group exposed to takeover.
Schaeffler said last week it had secured the rights to about 36 per cent of Continental's shares. If Schaeffler's offer succeeds, the two companies will have a combined turnover of about 33 billion dollars. (dpa)