Schaeffler Archives - Page 13 of 17 - Tyrepress

Posts

Continental to Increase Share Capital by 1 Billion Euros

Continental AG executives are reportedly planning to increase the company’s share capital by around 1 billion euros. Alan Hippe, Conti CFO and head of the group’s tyre and non-tyre products division told Reuters that the move was designed to secure the company’s financial position: “In view of the difficulty to predict how things will develop over the course of this year, it’s completely logical to think about strengthening your equity capital…”

Hartmut Meine, a member of Continental’s supervisory board told the news agency that the automotive supplier is already in preliminary talks with potential subscribers, which could include “industrial companies, family-held groups or financial investors.” Reuters reported that Continental shares fell up to a fifth following news of the capital increase plan. At the time of going to press, Continental’s share price was around 20.90 euros. The fact that the current share price is so low may mean that Continental will use the maximum third of its existing equity to raise the funds, Reuters reported.

15th January 2009/by Tyrepress Editors

Investments Banks Hold 35.75% Stake in Conti

Investment banks B. Metzler seel. Sohn & Co Holding AG and Merrill Lynch have bought shares equating to a combined voting stake of 35.75 per cent in Continental AG. According to a Reuters report, Metzler has built a 19.5 per cent voting stake, while Merrill Lynch International holds 16.25 per cent. The two companies are now the largest shareholders after Schaeffler Group (49.9 per cent). On 22 December 2008 Metzler and Sal. Oppenheim bought stakes of 4 per cent and 5.5 per cent each.

14th January 2009/by Tyrepress Editors

Schaeffler Concludes Takeover of Continental AG

The Schaeffler Group has completed its planned takeover of Continental AG, paying 75 euros per share to the depositary banks of those who tendered their shares to Schaeffler. As a result of all the recent share trading, Schaeffler Group holds 49.90 per cent of the voting stock of Continental AG and is therefore the company’s largest shareholder. At the peak of the complicated transaction Schaeffler Group held up to 90 per cent of Conti stock, although Schaeffler has now transferred the additional shares tendered to financial institutions. The European Commission gave clearance for Schaeffler to go ahead with its plans to buy into Continental AG on 19 December 2008.

“The conclusion of the takeover clears the way for integrating the companies quickly and in a pragmatic manner. Against the backdrop of the financial crisis and the market changes in the automotive industry, both companies are facing great challenges and have no time to lose. Constructive cooperation and concentration on factual issues and business matters is all important now. This is also what our staff and customers expect from us”, explained Dr. Juergen M. Geissinger, Schaeffler Group president and CEO.

In the company’s completion statement Dr Geissinger again failed to define Continental AG’s highly profitable tyre and rubber businesses as “strengths.” While he did remark that the combined companies will bring together “Schaeffler’s strengths in mechanical, mechatronic and precision components for engines, transmissions and chassis and Continental’s strengths in electronics and software systems for engines, chassis and vehicle interiors” the fact that he did not mention tyres or rubber products means there are still question marks over the future of these parts of the business.

8th January 2009/by Tyrepress Editors

Second Private Bank Acquires Conti Share From Schaeffler

In addition to its sale of 5.48 per cent of its share in Continental AG to Sal. Oppenheim, the Schaeffler Group has sold a 3.99 per cent parcel of shares to the German private bank B. Metzler seel. Sohn & Co. In a January 5 regulatory filing, Continental said the amount of its voting rights held by Schaeffler had thus fallen from more than 20 per cent to 15.2 per cent.

7th January 2009/by Tyrepress Editors

Schaeffler Sells 5.5% of its Conti Shares to Sal. Oppenheim

Schaeffler Group has reportedly transferred 5.5 per cent of the shares it holds in Continental AG to Sal. Oppenheim Jr. & Cie. Stock tendered by Continental investors gave Schaeffler direct and indirect control of 90 per cent of the company, almost doubling an agreed limit of 49.99 per cent. Schaeffler Group spokesperson, Detlef Sieverdingbeck, told Tyres & Accessories that the transfer of shares to Sal. Oppenheim was the first such move and that more will follow.

5th January 2009/by Tyrepress Editors

Schaeffler’s Takeover of Continental Gets EU Approval

The EU Commission has granted approval of the takeover of Continental AG by the Schaeffler Group. According to an official statement released by the company shortly after the approval was granted on Friday 19 December, “the Schaeffler Group will now conclude the takeover without delay.” Schaeffler will pay 75.00 euros per share to the depositary banks of those shareholders who have tendered their shares to Schaeffler, on or around 8 January 8 2009. The depositary banks will then credit these payments to the shareholders’ accounts. According to the company, shares tendered for sale can be traded up until 2 January 2009.

“The takeover of Continental AG is a decision of far-reaching strategic importance for the Schaeffler Group. With Schaeffler and Continental we’re bringing together two excellently positioned German technology leaders. This merger will create one of the most successful global automotive suppliers with outstanding expertise in the high-growth fields of energy efficiency and alternative powertrain systems. It is our target to spearhead the global market,” emphasized Dr. Jürgen M. Geissinger, Schaeffler Group president & CEO.

22nd December 2008/by Tyrepress Editors

Conti Shares Fall Amid Rumours of EU Decision Delay

Continental today fell 6.5 per cent as stock brokers speculated the EU decision on the validity of the company’s proposed takeover by Schaeffler Group may be delayed. “These decisions usually come by noon (local time) and as there has been no accouncement yet, investors are getting worried that the decision may be delayed,” a Frankfurt-based told AFX news agency.

19th December 2008/by Tyrepress Editors

Conti/Schaeffler EU Ruling Due Tomorrow

Continental AG shares rose to one-month high as the stock market speculated that European regulators will give the Schaeffler Group takeover bid the green-light tomorrow. Bloomberg reported that Conti stock surged 19 per cent to 42.70 euros during the day’s trading.

Meanwhile dormant tensions in the seemingly inharmonious takeover appear to be mounting again following newspaper reports that Schaeffler is planning to force out Hubertus von Gruenberg. Continental’s supervisory board chairman. According to Handelsblatt, “Von Gruenberg wants to establish a ‘leading role’ for Continental within the merged company, an effort that Schaeffler CEO Juergen Geissinger is attempting to thwart.”

18th December 2008/by Tyrepress Editors

Is Schaeffler Walking Out on Continental Investment Agreement?

Schaeffler Group has signalled that it is willing to consider abandoning the investment restrictions it agreed earlier this year to pacify its hostile takeover of Continental – much to the annoyance of Conti executives. Schaeffler sources told Financial Times that the investment agreement had become obsolete “as it was constructed at a time when the world was very different.” The agreement limits the ball-bearing maker to a 49.99 per cent stockholding in Continental and upholds the tyre and automotive supplier’s independence as a legally separate entity.

Schaeffler initially said it was only interested in holding a minority stake in Conti, however, as it stands the company holds the rights to more than 90 per cent of the shares. In addition, on 14 December Frankfurter Allgemeine Zeitung’s Sunday edition printed an interview with Maria-Elisabeth Schaeffler and company chief executive officer Juergen Geissinger, in which the executives revealed they are seeking four seats on Continental’s supervisory board. According to Reuters, Schaeffler would like the four seats it is seeking to be occupied by company CEO Juergen Geissinger, CFO Thomas Hetmann, Maria-Elisabeth Schaeffler and her son Georg.

15th December 2008/by Tyrepress Editors

Report: Schaeffler Needs up to 7 billlion Euros Share Capital

Schaeffler Group needs somewhere between 4 and 7 billion euros of new share capital, Germany’s Handelsblatt newspaper reported on Friday 12 December. According to a Perella Weinberg study presented to Continental’s supervisory board, Schaeffler has net debt of around 11 billion euros (six times annual EBITDA), Handelblatt reported. The newspaper’s banking sources said at the end of November no changes would be made to Schaeffler’s 16.1 billion euro syndicated loan before 2009.

At the same time as Handelblatt published its story, Wall Street Journal Europe reported that Continental is in talks to restructure the multi billion euro loans it arranged for the purchase of Siemens VDO Automotive. However, Reuters reported that Continental is not trying to restructure these “at this stage.” Quoting a source familiar with the matter, the newswire said it may have to do so next year if Schaeffler increases its stake to a majority shareholding or if the economic environment worsens dramatically.

12th December 2008/by Tyrepress Editors

Conti Board Refuses to Sell Rubber Business

Continental AG stood up to its major shareholder and takeover suitor, Schaeffler Group, on Wednesday (10 December) by refusing to sell the group’s tyre and rubber products business. Sources told the Financial Times that Conti’s supervisory board unanimously decided not to sell the company’s “rubber” unit, apparently rebuffing Schaeffer’s demands. Instead Conti’s board announced plans for a three-digit million euro cost cutting programme and said it is considering axing its dividend payment. FT’s source was also reportedly keen to stress that Continental should be in the driving seat of any industrial cooperation between the two companies: “We want to make it clear that, if David and Goliath go together, Goliath has to be in the drivers seat.”

Schaeffler Group’s 12.1 billion euro hostile takeover bid, launched earlier this year, cooled down slightly when former CEO Manfred stepped down and Dr Karl-Thomas Neumann took over in September. However, while FT reports that Neumann was Schaeffler’s preferred candidate, the newspaper also points out that “he has acted solely in the interests of Continental.”

11th December 2008/by Tyrepress Editors

Schaeffler/Conti Saga – ‘Over By Christmas’?

Company News, Editorial/Comment

The announcement had a phenomenal response at the stock market where, following publication of Schaeffler’s statement on EU approval, tendered shares in Continental grew by as much as 50 per cent before levelling off at around 36 per cent up, in response. Why? Because up to this point investors had become decidedly nervous about Schaeffler’s ability to complete the deal and the EU announcement was seen as a sign that the deal as a whole is on track. Due to the well-documented contraction in credit markets bankers had been scratching their heads about where the necessary financing would come from and whether the supporting banks would be able to come up with cash.

25th November 2008/by Tyrepress Editors

Reports: “Porsche Not After Conti Stake”

Porsche has denied speculation that it may be interested in buying a stake Continental AG, after an earlier news agency report intimated that Schaeffler Group (Conti’s owner in waiting) may team up with another partner to buy all of Continental. “There is definitely nothing to this,” a Porsche spokesman told Reuters. In the months since Schaeffler bid 75 euros a share for a 49 per cent stockholding in Continental, speculation has linked most premium tyre manufacturers and a collection of investment banks with the tyre and automotive supplier.

17th November 2008/by Tyrepress Editors

Schaeffler Confident of EU Merger Approval in 25 Days

Schaeffler Group has received the go-ahead from the EU Commission to formally file its Continental AG merger notification, but speculation remains that Conti’s new owners may sell some of their assets. In an official statement Schaeffler Group reported that it will submit the documents required for initiating a merger clearance examination today (14 November 2008). “We will implement our strategy according to plan and conclude the takeover after approval from the EU Commission,” said Dr. Jürgen M. Geißinger, Schaeffler Group president and CEO.

However while Schaeffler’s public comments are fine-tuned to communicate that the merger plans are on track, details of whether or not tyres will figure in any possible future merged company are noticeable by their absence. In the EU approval statement Dr. Geißinger said Schaeffler would aim to combine the two companies strengths in “mechanical, mechatronic and precision components for engines, transmissions and chassis with Conti’s strengths in electronic, software and system solutions for engines, chassis and the passenger compartment” so together Schaeffler and Continental can “develop systems for reduced fuel consumption such as hybrid and electrical drives.” Tyres were not defined as one of Continental’s strengths.

14th November 2008/by Tyrepress Editors

Schaeffler: Conti Share Sale ‘Cannot be Ruled Out’

Maria-Elisabeth Schaeffler, the joint owner of the ball bearing manufacturer in control of 90 per cent of Continental AG, may sell some of the company’s Conti shares. Schaeffler told journalists at an automotive business conference in Berlin that the financial crisis was hindering her company’s plans to take over Continental AG. “It cannot be ruled out that a long-term orientated investor could take a larger stake in Continental,” the Financial Times quoted Schaeffler as saying.

5th November 2008/by Tyrepress Editors