New Acquisitions By Continental

According to rumours, Continental is negotiating to acquire Temic (an electronics company with a turnover of about 900 million Euro) as well as with German conglomerate Siemens to acquire their daughter company Sachs, which produces shock absorbers and turns over around 2,200 million Euro. It is far from clear how Continental could finance such a deal, which would cost at least 2,000 million Euro. In spite of the low share price and low market capitalisation, it should not be assumed that Continental would get money from new shareholders for a reasonable price.

On the other hand, Continental announced months ago that the group is willing to sell ContiTech, which has a turnover of 1,800 million Euro, but so far no company has offered Continental a reasonable price. At the moment, the whole group, with a turnover of 10,000 million Euro, is worth significantly less than 3,000 million Euro at the stock exchange..