Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Continental AG    CON   DE0005439004

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

CONTINENTAL : rejects $18 bln bid from family firm

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/16/2008 | 12:16pm CET

Tires-to-brakes maker Continental rejected Schaeffler Group's surprise 11.2 billion euro ($17.8 billion) bid, saying only the family owned firm stood to gain from the offer which was too low.

By Christiaan Hetzner and John O'Donnell

Late on Tuesday, the ball-bearing maker announced the terms of its proposed takeover after winning control of more than a third of Continental's shares through a web of options organized for it discretely by banks.

If Schaeffler succeeds in buying the Hanover-based group, which is three times its size, it would be the first time a German family business takes over a company listed on the country's blue-chip DAX index.

The takeover, which would also see Schaeffler take on Continental's 11-billion-euro-plus debt pile, would be the biggest so far this year in Europe and put the car-parts supplier nose-to-nose with Germany's Bosch.

Continental is working with Goldman Sachs to mount a defence against Schaeffler, owned by German billionaire Maria-Elisabeth Schaeffler.

Schaeffler chief Juergen Geissinger had sought to calm management fears, saying that he did not intend to break up Continental or slash jobs. Both firms, he said, were a good fit.

But on Wednesday, Continental's Chief Executive Manfred Wennemer told shareholders not to accept the offer and pledged to fight for the company's independence.

Schaeffler's offer of 69.37 euros per share in cash, he said, did not reflect the full value of the company. Continental's stock was trading slightly down at 73.17 euros, after strong gains in recent days.

"There is no convincing strategic rationale for a business combination," Continental said.

TYRE PRESSURE

Continental was built through a series of acquisitions of high-tech car parts makers, bought with money earned selling car tyres.

Weakened by heavy borrowing to pay for its roughly 11 billion euro purchase of VDO -- which makes the technology inside satellite navigation and fuel injection systems -- Continental now faces a slowdown in car buying as high oil prices bite.

Over the past year, like many rivals, Continental's stock has suffered. Before this week's bounce, it had halved in value.

It had long been speculated that a private equity firm might buy Continental, but those investors rely heavily on debt and the credit crunch makes it harder for them to compete with often cash-rich trade buyers.

Schaeffler's move is similar to that of Porsche's <PSHG_p.DE> takeover of Volkswagen <VOWG.DE>. The smaller sports car maker also bought a stake of 30 percent, made a token takeover bid and is now covertly creeping towards majority control.

(Additional reporting by Arno Schuetze in Hanover)

(Editing by Erica Billingham)

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CONTINENTAL AG
12/06 CONTINENTAL : Federal Contracts Awarded to Companies in Ohio (Dec. 6)
12/06 CONTINENTAL : Federal Contracts Awarded by Federal Agencies in Michigan (Dec. 6)
12/06 CONTINENTAL : MILITARY $77.06 Million Federal Contract Awarded to Veyance Techno..
12/02 SWARM INTELLIGENCE FOR MOTORCYCLES : Continental Brings eHorizon to Two-Wheelers
12/01 CONTINENTAL AG WEBCAST PRESENTATION : dbVIC - Deutsche Bank ADR Virtual Investo..
11/30 CONTINENTAL : Assisted and Automated Driving are paving the way to put road acci..
11/28 CONTINENTAL : Infotainment Platform Available in Peugeot, Citroën and DS Models ..
11/25 WORKING AS A TRUCKER : Day-to-Day Mixture of Dream Job and Self-Exploitation
11/22 CONTINENTAL : operating earnings drop in third quarter
11/22 CONTINENTAL : Wireless Connectivity for E-Class Drivers
More news
Sector news : Auto, Truck & Motorcycle Parts - NEC
09:06pDJShell Signs Preliminary Iran Oil Deal Despite Trump Doubts
12/01 As Trump touts Indiana jobs deal, U.S. factory work seeps overseas
11/29DJIntel Recruits ARM Executive Thomas Lantzsch to Head Connected Device Effort
11/29DJSamsung Tries to Appease Investors But Delays Big Changes
11/29DJSamsung Electronics Says It Will Consider Restructuring
More sector news : Auto, Truck & Motorcycle Parts - NEC
News from SeekingAlpha
11/11 Continental AG ADR 2016 Q3 - Results - Earnings Call Slides
11/11 Continental's (CTTAY) CEO Ralf Cramer on Q3 2016 Results - Earnings Call Tran..
11/10 Continental reports Q3 results
10/31 ORION ENGINEERED CARBONS : Solid Play On A Niche Market
09/22 Ongoing Outperformance At Valeo Continues To Build Value
Advertisement
Financials (€)
Sales 2016 40 523 M
EBIT 2016 4 237 M
Net income 2016 2 818 M
Debt 2016 3 051 M
Yield 2016 2,35%
P/E ratio 2016 12,19
P/E ratio 2017 10,76
EV / Sales 2016 0,92x
EV / Sales 2017 0,85x
Capitalization 34 361 M
More Financials
Chart CONTINENTAL AG
Duration : Period :
Continental AG Technical Analysis Chart | CON | DE0005439004 | 4-Traders
Full-screen chart
Technical analysis trends CONTINENTAL AG
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 28
Average target price 197 €
Spread / Average Target 15%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Elmar Degenhart Chairman-Executive Board
Wolfgang W. Reitzle Chairman-Supervisory Board
Wolfgang Schäfer Head-Finance & Controlling
Karsten Michels Head-Systems & Technology
Michael Iglhaut Member-Supervisory Board
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CONTINENTAL AG-23.49%36 826
DENSO CORP-14.90%33 613
HYUNDAI MOBIS CO., LTD..--.--%21 273
DELPHI AUTOMOTIVE PLC-23.15%17 843
MAGNA INTERNATIONAL IN..4.31%16 677
VALÉO10.91%13 507
More Results