It appears that Schaeffler is aiming to secure four seats on Continental’s supervisory board. This news was disclosed to Reuters on August 21 by ‘sources familiar with the situation’. At this time it is unclear whether the family-owned bearings manufacturer will also claim chairmanship on the supervisory board; Conti’s supervisory board is expected to convene on the weekend of August 23-24.
Despite net sales rising 29.4 per cent to $994 million in the full 2007 year to December 1, Amtel-Vredestein has recorded a pretax loss of $222 million for the year. The company states that its strong sales were boosted by its core passenger car tyre business, as well as good trading in other tyre segments. Sales from the company’s Russian operations grew 30 per cent to $439 million, while sales from European operations via the Company’s Vredestein Banden subsidiary rose 18 per cent to $402 million.
India’s natural rubber exports are said to have increased 38 per cent between April and July this year, according to estimates from the country’s Rubber Board. A total of 23,998 were exported during the period as opposed to 14,816 tonnes in the same period of the previous financial year. Favourable global market conditions in July led to a total of 10,862 tonnes of natural rubber exported during this month alone.
Continental AG’s management is struggling to find a majority willing to back its anti-takeover strategy on the group’s supervisory board. Frankfurter Allgemeine Zeitung confirmed earlier reports that supervisory board head Hubertus von Gruenberg sees a merger with Schaeffler as beneficial and therefore is skeptical about getting involved in a drawn out battle with the takeover aggressor. Hans-Olaf Henkel and Michael Frenzel, CEO of TUI AG. are also believed to back negotiations with Schaeffler, the paper added. However, supervisory board members Diethard Breipohl and Fred Steingraber are said to be sticking to their guns with a view to eventually forcing Schaeffler to increase its bid, Frankfurter Allgemeine Zeitung reported.
Bridgestone Corporation announced on August 8 that its board of directors has approved the following proposals of the changes in corporate officers:
The following corporate officer positions and responsibilities are changing, effective August 16, 2008
– Koki Takahashi
New position and responsibilities: vice president and officer; chief financial officer, Finance; concurrently director, Internal Control Division
Current position and responsibilities: Vice president and officer, chief financial officer, finance
Hayes Lemmerz International has announced the promotion of Mark A. Brebberman to the position of vice president and chief financial officer. Brebberman succeeds James A. Yost, who left the company in May. Originally joining Hayes Lemmerz in December 2001 as the North American Wheel Group Business Unit controller, Mr. Brebberman was promoted to corporate controller, operations and corporate controller in April 2004 and July 2007, respectively.
“We are fortunate to have a person of Mark’s capability and experience within Hayes. Mark has a deep knowledge of the corporation and its operating companies,” said Curtis Clawson, president, CEO and chairman of the Board. “I’m confident in the capabilities of Mark and our other finance department leaders to make this a seamless transition.”
Continental AG chairman Hubertus von Gruenberg has said he would like to avoid a “scorched earth” policy in relation to Schaeffler’s takeover bid. Speaking in an interview with Manager Magazin scheduled for publication on Friday, but released a day before Conti’s supervisory board meeting on the takeover, he said the company should not waste resources fighting Schaeffler.
On the subject of a reported rift with chief executive, Manfred Wennemer, von Gruenberg said the pair’s differences of opinion are “not fundamental.” Schaeffler is willing to commit itself contractually not to break up Continental into separate parts, von Gruenberg was also quoted as saying.
As temperatures in the largest takeover in Europe this year rise, Schaeffer Group has welcomed comments from Continental AG’s works committee. Writing to Schaeffler Group owner, Maria-Elisabeth Schaeffler, the committee said staff did not like the methods used by Schaeffler to gain a strategic stake in their company: “We have the impression that an investor has slipped in the back door to make a hostile takeover and dismantle the Continental group.”
Schaeffler offered an olive branch inviting the representatives to enter talks in return following earlier withering remarks about the ball-bearing maker’s trustworthiness from Conti supervisory board member, Thorsten Reese. “We simply have no trust [in them],” Reese, who speaks for the company’s middle managers told the DPA agency, adding: “They can promise us heaven and earth.”
“We stand by our commitments,” Schaeffler responded in a statement. “Continental should remain as a whole, including…the tyre business, as an independent, listed company with headquarters in Hanover,” said Dr. Juergen M. Geißinger, CEO of the Schaeffler Group. Schaeffler’s statement comes 12 hours before supervisory board members will meet in Hannover.
The Schaeffler Group’s 11.2 billion euro bid for Continental AG has led to significant unrest amongst board members. According to various news sources, a rift has developed between chairman Hubertus von Grünberg and other executives. Frankfurter Allgemeine Zeitung went as far as saying that CEO Manfred Wennemer would be willing to step down in order for management board member Dr Karl-Thomas Neumann to take his place. Continental’s press department denied that this was the case.
The dissension appears to centre on Hubertus von Grünberg’s criticism of senior executives’ confrontational way of refusing Schaeffler’s offer. According to the Finanacial Times, his argument is that Schaeffler has pretty much succeeded in its bid by getting control of 36 per cent of Conti shares and that too much of a struggle could result in the break up of the company.
The Schaeffler Group has responded to Continental AG’s angry rejection of its bid with a similarly defensive statement of its own. “The Schaeffler Group cannot understand the negative reaction of Continental AG’s Executive Board and has no sympathy for the CEO’s chosen style of confrontation,” a company statement read.
Schaeffler again explicitly reiterated its commitment to Continental’s long term strategy particularly in relation to the tyre business. “Schaeffler will therefore not be dismantling Continental AG,” the statement clarified, adding that Schaeffler would maintain Continental as an independent entity, keeping the headquarters in Hanover.
An investigation into the explosion at the Goodyear chemical plant in Houston last month, which killed employee Gloria McInnis, has begun. While her death has been ruled accidental, The US Chemical Safety and Hazard Investigation Board has decided to launch its own enquiry alongside the company’s own probe.
Goodyear is cooperating fully with the investigation, having hosted the CSB since Tuesday. The CSB spokesman Daniel Horowitz stated that they had interviewed witnesses, who confirmed that the accident was caused by the over-pressurisation of a heat exchanger during maintenance, and requested a number of documents from Goodyear. Meanwhile, Goodyear spokesman Scott Baughman released a statement saying that the company had been in touch with the CSB since the day of the fatal accident.
Titan International announced on June 11 that the company’s Board of Directors approved a five-for-four stock split with a record date of July 31, 2008, and a payable date of August 15, 2008.
“This action is being taken to show our stockholders how much we appreciate their support,” said chairman and CEO Maurice M. Taylor Jr. “We are optimistic that 2008 will continue to be a period of further growth in sales and earnings as we proceed with the implementation of 57- and 63-inch off-the-road tyre production in the third quarter.”
A replacement for outgoing Continental AG chief financial officer Alan Hippe is still expected to be appointed by autumn. Conti supervisory board head Hubertus von Grünberg confirmed the company’s plans when speaking with the Germany Handelsblatt financial newspaper, and added that CEO Manfred Wennemer and the supervisory board now need to reach a decision on candidates already interviewed.
With Hippe taking over Continental’s passenger car tyre and ContiTech divisions, von Grünberg said the company would prefer the next CFO to be drawn from within industry ranks, but it is also in talks with bankers and is considering internal candidates.
The president and CEO of Continental Teves North America, William L. Kozyra, has elected to leave the company as of June 1, 2008. Mr. Kozyra’s request to terminate his contract and appointment to the company’s Executive Board early was accepted during a meeting of the Continental AG Supervisory Board on May 29. In a statement Continental says Mr. Kozyra will, following his resignation, “take up a new challenge in another company.”
William Kozyra had been deputy member of the company’s Executive Board for the NAFTA region since February 2006. Amongst other roles, Kozyra was responsible for the integration of the Motorola Automotive activities into Continental. The Supervisory Board of Continental has expressed its thanks to Mr. Kozyra for all the work he has done during his ten years as president and CEO of Continental Teves North America and has wished him every success in his new assignment.
Titan International shareholders elected Richard Cashin, Albert Febbo and Mitchell Quain to serve as directors with three-year terms. At the subsequent May 15 board of directors meeting, Morry Taylor was re-elected as chairman and CEO, Erwin Billig was re-elected as vice chairman, Ernest J. Rodia as executive vice president and COO, Kent Hackamack as vice president of finance and treasurer, and Cheri Holley as vice president and secretary. (Tire Review/Akron)
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