Hamburg Court Approves ContiTech/Phoenix Merger

A Hamburg court has dismissed a total of 26 actions relating to the merger of ContiTech and Phoenix. In so doing, the court affirmed the validity resolutions made at a Phoenix extraordinary shareholders meeting at the end of 2004. This means the merger has cleared a significant legal hurdle on the road to completing legal clearance.

In view of Phoenix AG’s overriding interest in the execution of the merger, the court ultimately turned down objections the entry of the merger in the commercial register of Phoenix AG. “We welcome this decision in the interest of Phoenix, its employees and its customers,” declared Gerhard Lerch, chairman of the executive board of ContiTech AG.

Since the execution (in November 2004) of the takeover offer made by Continental AG to Phoenix AG shareholders, the Continental Corporation has controlled 75 per cent of the capital stock of the Hamburg-based rubber company Phoenix. According to the companies involved the merger moves were made in order to realise considerable synergies with the Continental subsidiary, ContiTech AG, and Phoenix AG. A definitive approval and enactment of the merger is expected to take place in the first few months of the New Year.