SPD May Support Schaeffler State Aid

Germany’s Social Democratic party (SPD) is reportedly “open in principle” Continental AG major shareholder Schaeffler Group with state aid, SPD chairman Franz Muentefering told reporters in Berlin. “Situations can arise in which you need to help many, many families in order to prevent a catastrophe…Then you need to do it,” Muentefering added. The politician didn’t give any details of how government discussions on how the government’s discussions with Schaeffler could work out.

Other German politicians remained reticent about offering aid to the Schaeffler Group. “It is not the first thing that should be done,” Karl-Theodor zu Guttenberg told daily Frankfurter Allgemeine Zeitung. For his part, he described the move as a “last-ditch” option.

Meanwhile Forbes reported that Continental deputy chairman Werner Bischoff still prefers the idea of finding an investor to the business’ tyre and rubber.

An article in Germany’s Focus magazine reported that proceeds of 5 to 7 billion euros would greatly reduce Continental’s debt burden.