Ball bearings maker Schaeffler has agreed to limit itself to a minority shareholding in German car parts maker Continental AG, ending a hostile takeover battle for the company, Continental said on Thursday.
Schaeffler will be limited to a maximum stake of 49.99% for a four-year period after it raised its offer to €75 per share, Continental said in a statement. Schaeffler offered €70.12 per share for Continental last month when it launched an €11.3 billion ($16.68 billion) hostile bid for the tyres-to-brakes group three times its size. “With this agreement, the dispute regarding the public takeover offer by the Frankish family-owned business has been settled,” Continental said. No details were provided about what happens after the four-year period.
Continental, which said the new offer price was a 39% premium to the stock’s value immediately before the takeover bid was announced, added that deal cannot be concluded before spring 2014. Continental CEO Manfred Wennemer will step down from Aug. 31 and his replacement will be named shortly. (Reuters)