Continental Archives - Page 156 of 229 - Tyrepress

Hannover-based Continental AG is a leading automotive supplier and – according to the company – is “the choice of leading car manufacturers, offering award-winning tyres that deliver responsive braking in all weather conditions.”

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New Conti Steer Radial Out

Continental Tire North America has introduced the Continental HSL2 long haul steer axle radial. CTNA said the new tyre is “is the first in a series of the next generation fuel efficient tyres” the company plans. The tyre, said CTNA, was developed as an all-position/steer tyre for long haul applications. The new radial features Continental’s patented FlexLock technology, vertical siping, a long wear tread compound, and Visual Alignment Indicators on the shoulder ribs. The tyre is available in sizes 11R22.5, 11R24.5, 275/80R22.5 and 285/75R24.5. (Tire Review)

13th August 2008/by Tyrepress Editors

Conti’s Supervisory Board “Open to Talks With Schaeffler”

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.

12th August 2008/by Tyrepress Editors

Conti Considers Peer Acquisition to Defend Against Schaeffler Bid

Continental is considering the option of purchasing a peer company as part of its defence against the Schaeffler Group’s 11.3 billion acquisition bid, according to information published in the Financial Times on August 9. The newspaper quoted sources close to the situation as saying Conti was engaging in “concrete talks” with several listed and unlisted international rivals about a possible multi-billion-euro deal, however Conti has not commented on the validity of this news.

The report said any deal, which would be structured as an all-share bid, would most likely be funded via a capital increase of about 20 per cent, which would be worth more than 2 billion euros. The move would have the dual effect of strengthening Continental’s position, while simultaneously diluting the the value of Schaeffler’s stake. Schaeffler has previously warned Continental not to resist its bid by means of a large capital increase.

11th August 2008/by Tyrepress Editors

Conti OE for Dacia Sandero

Continental reports that every second new Dacia Sandero, the latest model released by the Romanian manufacturer, rolls off the production line equipped with its tyres. The majority of these are ContiEcoContact 3 in size 185/65 R15 88T, produced at Conti’s Timisoara facility in Romania. This latest OE homologation continues a supply partnership between Dacia and the Timisoara factory that began in 2005.

“Tyres of the last technological generation have an important contribution to traffic safety,” commented Thierry Wipff, general manager of Continental’s Timisoara plant. “For us, the safety of our customers is of highest priority, a core criterion in conducting our activity and an important part of Continental’s vision.”

11th August 2008/by Tyrepress Editors

Schaeffler “Very Satisfied” With Bank Meeting

As report suggest investment banks have walk away from rescuing Continental AG from the Schaeffler Group’s hostile takeover, Reuters that the ball bearing maker has successfully arranged a 16.1 billion euro loan. Schaeffler is reportedly “very satisfied” with a bank meeting on the subject of raising the enormous loan. The sources said about 20 banks participated in the meeting.

11th August 2008/by Tyrepress Editors

How Many Vehicles are Misaligned?

How much of the car parc is running on misaligned wheels? A new initiative (‘Alignment Data Collection Day’) led by Pro-Align, the UK’s leading four wheel alignment specialists, is seeking to answer this question. Those involved in wheel alignment claim to have a good idea already, but there is a distinct lack of accurate and current data, which is what led to the research being conducted. The statistics are being collated and will be published on the Pro-Align website from the 1 September.

The key is to ensure a random sample of cars is selected in measured. The easiest option for Pro-Align would have been to ask their Hunter equipment users to supply the data about the motorists who came to them for alignments. However, it was felt these results may not be representative as the car drivers tend to go to an alignment centre because they suspect a problem.

11th August 2008/by Tyrepress Editors

Conti to Display ‘Fuel Efficient’ Tyres at IAA Show

At the 62nd IAA Commercial Vehicles in Hanover, Germany, held between September 23 and October 2, Continental intends to present a wide range of products and services for commercial vehicle manufacturers, fleet operators and special-purpose vehicle manufacturers. The company reports it will be exhibiting both indoors, at booth B05 in hall 17, and outdoors (G 63). Last year’s takeover of Siemens VDO Automotive has further expanded the company’s product spectrum, specifically in the area of commercial and special-purpose vehicles. All in all, five of Continental’s six divisions will have new products and services on view at the IAA Commercial Vehicles 2008, not least the tyre products division.

7th August 2008/by Tyrepress Editors

BCT Addition Makes VDB Total Private Brand Supplier

Van Den Ban’s (VDB) wide assortment of private brands serves a wide range of tyre market segments. And now that the company stocks the Chinese-produced Beijing Capital Tire (BCT) brand, VDB claims to hold all sizes and varieties in stock from budget tyres to high performance to SUV/4×4 tyres. “Last year we added BCT to our assortment and since then we can say we can supply all segments of the market, not only with premium brands, but also with our private labels”, says Cyril Versteeg, Commercial Manager with Van den Ban.

BCT sits at the budget end of VDB’s product portfolio and comes in a range of passenger car, (ultra) high performance, high performance, asymmetric and some light truck sizes. The S600 PCR range comprises 34 sizes from 13 to 16 inches in diameter, while UHP S800 and HP asymmetric S900 contain a total of 26 sizes and ranging from 14 to 19 inches.

7th August 2008/by Tyrepress Editors

Schaeffler Warns Continental Off Capital Raising Defence

Schaeffler Group has warned Continental not to employ a large capital increase as a way of warding off its 11.3 billion euro unsolicited takeover bid. Schaeffler’s move meant dropping a condition that would end the bid if Continental prepared to raise its share capital during the offer period, which is due to end on 27 August. “Schaeffler group thus counters market speculation that its offer to Continental shareholders could be prevented by such…measures,” an official statement explained.

6th August 2008/by Tyrepress Editors

Another New Continental?

July saw all the leading tyre manufacturers report lower than expected earnings as a knock-on effect of high raw material prices and lower new vehicle demand. Everyone saw this coming. The 11.3 billion euro “sneaking” bid ball bearing maker Schaeffler Group pitched to buy Continental AG was distinctly less predictable. In the days that followed Continental’s management went on the defensive and cried foul to financial regulator Bafin, making what had up till then been the largest takeover bid in Europe into the largest hostile takeover the continent has seen this year.

5th August 2008/by Tyrepress Editors

Live by the Sword, Die by the Sword

In July those at Continental AG learnt what it feels like to be victims of their own success. Only a year after it multiplied group annual sales to over 25 billion euros through the acquisition of Siemens VDO, it appears Continental has made itself so attractive to bearing maker Schaeffler Group that the privately held company (which is about a third of Conti’s size) stalked its way to controlling roughly 36 per cent of the tyre and automotive supplier (see August's Tyres & Accessories for full coverage). On the one hand this is a compliment to the leadership that has brought Continental to where it is today. But on the other hand it comes as stark warning that stock markets can be fickle and public ownership can leave you at the mercy of shareholders.

Furthermore, it could be argued that leveraging itself and courting the stockmarkets in order to achieve its ambitious goals has been a double-edged sword – and in July Conti’s management felt the sting of its own blade. In the last few years Continental has been on something of corporate shopping trip. The biggest single purchase by some way was the acquisition of Siemens, announced in July 2007. This move was perhaps the biggest step towards Conti’s vision of a “new Continental,” which would produce cutting edge tyre to brake automotive technology.

5th August 2008/by Tyrepress Editors

Continental to Hold Supervisory Board Meeting on 13 August

Continental AG’s supervisory board has arranged for a supervisory board meeting to take place on 13 August, online news sources are reporting. Schaeffler Group’s 11.3 billion euro bid will be top of the agenda, sources told the dpa news agency. The news follows reports that Continental’s management is working to drum up allies including private-equity firms to fend off Schaeffler’s unsolicited takeover bid. It is not clear who the company’s potential white knight(s) may be, but the Wall Street Journal reported that Continental has held “preliminary discussions” with firms including US private-equity firm TPG.

5th August 2008/by Tyrepress Editors

Continental Bolsters Defences with Citigroup, HSBC

Continental AG has reportedly bolstered its defensive options against a hostile bid from Schaeffler Group with the appointment of Citigroup and HSBC to its defence teams. Quoting sources familiar with the matter, Reuters reported that the move will add two banks with the ability to lend cash from their balance sheets to Goldman Sachs, known for its defensive advisory work. The same source said defensive measure may include “a possible capital increase or striking a deal with a white knight.”

4th August 2008/by Tyrepress Editors

Professor: Schaeffler’s Creeping Takeover Illegal

Prof. Mathias Habersack, of Eberhard Karls University in Tuebingen, Germany, has spoke out against the way in which Schaeffler Group purchased share swaps in the build-up to its creeping takeover bid for Continental AG. In the course of defending itself from Schaeffler’s unsolicited 11.3 billion euro bid, Continental’s management cried foul and called in Bafin the German federal financial regulator. The officials cleared the takeover bid itself, but are reportedly still investigating the legality of the so-called creeping part of the takeover. The fact that Prof Habersack, himself a member of the board of trustees of the German Banking Law Association, has leant his support to Conti’s case, could suggest the legal angle will continue to be a key role in the company’s defence plan.

In a report commissioned by Continental AG Prof Habersack concluded that Schaeffler’s methods demonstrate “a clear infringement of the reporting and notification provisions of the German Securities Trading Act and Securities Acquisition and Takeover Act.”

1st August 2008/by Tyrepress Editors

Outsourcing to ContiNetwork Brings Transporter Significant Savings

Purfleet, Essex-based logistics company, FP Young Transport Limited has been experiencing significant savings and greater ease of use following the company’s decision to outsource the management of its fleet’s tyres to ContiNetwork partner TAB Tyres.

Since handing over its tyre administration to TAB, FP Young’s progressive shift to Continental’s rubbers is resulting in longer tyre life, resulting in fewer tyres being fitted and vehicle downtime being reduced. The structured tyre management process based on the five-stage ContiLifeCycle is ensuring that optimum life is obtained from every tyre through specifying the correct tyre from the outset and then re-grooving and re-treading when the time comes.

31st July 2008/by Tyrepress Editors