Schaeffler Raises Conti Bid to 11.3 billion euros

Schaeffler Group has increased its bid for Continental AG to 11.3 billion (70.12 euros per share), compared with its previous bid of 11.2 billion euros (69.37 euros per share). The move brings the company’s offer in line with Continental’s average three-month share price as determined by German market regulator, Bafin. Following its investigation into Schaeffler’s so-called “creeping bid,” Bafin has reportedly decided against holding up the takeover.

Meanwhile, Conti’s defensive strategy has begun to play out, with chief executive Manfred Wennemer receiving the backing of some of the company’s largest shareholders. One German institutional investor with more than 1 per cent of the Conti told the Financial Times: “An offer must note Conti’s long-term value and include a control premium,” adding that the bidder would have to offer 100 euros a share.

At the same time another major is demanding more than 80 euros per share, according German newspaper Handelsblatt. “The offer (of 69.37 euros) is clearly below the stock’s value and therefore unsatisfying. A fair price must be more than 80 euros,” he said.

Reuters quoted shareholders as saying the company was worth 80-100 euros per share, recommending a control premium of 20 per cent on top of that. Another investor, whose company holds more than 1 million shares in Continental, said he would consider selling the shares for between 80 and 100 euros each. It is not clear if the companies quoted by Handelsblatt are the same shareholders.