Analyst: Conti May Buy Schaeffler Assets, Float Rubber Group

Continental may buy Schaeffler Group’s automotive assets (namely LuK clutches and/or INA bearings) and then float its Rubber Group to pay for it. That’s the view of Klaus Pflum, head of investment bank Nomura's European automotive mergers and acquisitions operations, who made this prediction at the Reuters Auto Summit in Paris. In his view Continental is more likely to opt for an initial public offering (IPO) and this route may raise more money than a divestment and direct sale: "I don't see any banks who are willing to finance a four to five billion euro debt ticket,” Pflum told the conference.

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• Reitzle to Lead Conti Amidst Board Appointments

• Schaeffler to Propose Prof Dr Ing Reitzle as Conti Supervisory Chair

• Schaeffler Debt Deal – Paving the Way for a Merger

Read more related Schaeffler Group news here.