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

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

Real-time Quote. Real-time Tradegate - 09/26 08:39:35 pm
187 EUR   -2.15%
04:40p CONTINENTAL : Air Springs from ContiTech Deliver High Performance Ev..
04:40p CONTINENTAL : Transport Industry in the Digital Price Trap
04:40p CONTINENTAL : Announces Commercial Tire Information and Management S..
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 CEST

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
04:40p CONTINENTAL : Air Springs from ContiTech Deliver High Performance Even at Extrem..
04:40p CONTINENTAL : Transport Industry in the Digital Price Trap
04:40p CONTINENTAL : iTires, intelligent tires shipped from the factory
04:40p CONTINENTAL : Announces Commercial Tire Information and Management System 'Conti..
10:05a CONTINENTAL : Reaffirms its Commitment to the Mining Industry with Broad Portfol..
10:05a CONTINENTAL : Launches New Earthmoving Tires as ContiEarth™ range at MINEx..
10:05a CONTINENTAL : Launches New Underground Mining Tires as ContiMine™ range at..
10:05a CONTINENTAL : Showcases Four ‘Tried-and-True’ Lines of Industrial Mi..
10:05a CONTINENTAL : Lightweight Vehicle Components from ContiTech Now Also Available f..
10:05a CONTINENTAL : Control Units Optimizing Mining Applications with Structure and Di..
More news
Sector news : Auto, Truck & Motorcycle Parts - NEC
09/10DJDenso to Buy Stake In Car-Tech Supplier -- WSJ
09/09DJGENERAL MOTORS : GM Recalls Over Four Million Autos for Air-Bag, Seat-Belt Issue..
09/09DJToyota's Biggest Supplier to Take Majority Stake in Self-Driving Tech Firm
09/06DJVolvo Cars and Autoliv Form Autonomous Driving Software JV
08/23 Mobileye, Delphi aim to release self-driving system in 2019
More sector news : Auto, Truck & Motorcycle Parts - NEC
News from SeekingAlpha
09/22 Ongoing Outperformance At Valeo Continues To Build Value
09/21 Wall Street's Skepticism About BorgWarner's Future May Still Mean Opportunity
08/07 Continental (CTTAY) on Q2 2016 Results - Earnings Call Transcript
08/03 Continental Aktiengesellschaft reports Q2 results
05/08 Continental (CTTAY) on Q1 2016 Results - Earnings Call Transcript
Advertisement
Financials (€)
Sales 2016 40 767 M
EBIT 2016 4 644 M
Net income 2016 3 081 M
Debt 2016 2 635 M
Yield 2016 2,24%
P/E ratio 2016 12,48
P/E ratio 2017 11,68
EV / Sales 2016 1,00x
EV / Sales 2017 0,93x
Capitalization 38 221 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
TrendsNeutralNeutralBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 26
Average target price 213 €
Spread / Average Target 12%
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
Michael Iglhaut Member-Supervisory Board
Hartmut Meine Vice Chairman-Supervisory Board
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CONTINENTAL AG-14.90%42 907
DENSO CORP-28.23%33 061
HYUNDAI MOBIS CO., LTD..--.--%25 428
DELPHI AUTOMOTIVE PLC-18.92%18 960
MAGNA INTERNATIONAL IN..-0.74%16 134
AISIN SEIKI CO., LTD.-10.73%13 875
More Results