Schaeffler Archives - Page 8 of 17 - Tyrepress

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Continental to Launch 1 billion euro Share Offer in January

Continental AG will reportedly run its long-expected 1 billion euro share offer in January. Sources told the Reuters news agency that "preparations are almost done," with the prospectus to be discussed “at a board meeting in mid-December." According to the reports, the capital increase will be less than the maximum 54 million shares agreed by shareholders, as Schaeffler fears the dilution of its 90 per cent stake, the sources said. Reuters reported that Schaeffler wants to keep its Continental stake to at least 75.1 per cent. This will apparently give Schaeffler direct access to Conti's earnings after 2012, subject to the two companies’ acquisition agreement, which was signed following the initial takeover move in 2008.

18th November 2009/by Tyrepress Editors

Conti Announces Departure of Communications Chief Prokop

For almost nine years responsibility for Continental AG’s global communications has rested in the hands of Dr. Heimo Prokop, and during this time the senior vice president of Corporate Communications has, in Conti’s words, been “a formative influence on communication in decisive phases of the corporation’s development”. On November 17 Continental announced that Dr. Prokop will leave his position with the company at the end of 2009.

17th November 2009/by Tyrepress Editors

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.

3rd November 2009/by Tyrepress Editors

Schaeffler and IG Metall Form Joint Committee

Schaeffler Group and the IG Metall union agreed to form a joint committee which, according to the company, “represents the first joint step towards the agreed implementation of co-determination in the company. The joint committee consists of six representatives from each party and is intended for the exchange of information about issues related to the economic situation and further development of the Schaeffler Group. A representative of the Schaeffler Group will act as the chairman and an employee representative will be deputy chairman of the committee. The joint committee will hold four ordinary meetings per year.

27th October 2009/by Tyrepress Editors

Reports: Continental May Sell Bonds in Refinancing Move

Continental AG, is reportedly planning to sell bonds to refinance its debt. Bloomberg quoted two people “familiar with the situation” as saying the move follows HeidelbergCement AG’s so-called junk-bond sale. In this case demand outstripped supply and HeidelbergCement raised 2.5 billion euros selling its bonds. At the same time, Morgan Stanley made “large upward adjustments” to its earnings for Continental, its 2010 earnings per share predictions by 128 per cent to 2.74 euros. The analysts also raised their 2011 and 2012 estimates to 5.14 and 6.35 euros (up 52 and 32 per cent respectively). The bank’s new price target is now 37 euros, up 131 per cent from its previous position of 16 euros.

19th October 2009/by Tyrepress Editors

Geißinger Becomes Chairman of World Bearing Association

Schaeffler Group president and CEO Dr. Jürgen M. Geißinger has been elected president of the World Bearing Association (WBA) at the organization’s fourth annual meeting in Tokyo. The WBA represents the interests of the bearing industry where initiatives of individual companies have proved to be insufficient. Its objectives include the elimination of competition distorting trade restraints as well as the introduction of uniform environmental protection standards. Special focus is on the fight against product piracy.

“Counterfeiting earns large sums of money and causes immense economic damage,” explained Dr. Geißinger. “WBA will therefore further reinforce its initiatives – this means intensified information and clarification of facts for customers on one hand and uncompromising prosecution of offenders on the other,” said Dr. Geißinger.

WBA was established as an umbrella organization of the American Bearing Manufacturers’ Association (ABMA), the Japan Bearing Industrial Association (JBIA) and the European Bearing Manufacturers’ Association (FEBMA) in September 2006. It represents the leading global bearing companies with sales of approximately 20 billion euros, which equates to about 75 per cent of the rolling bearing market worldwide.

12th October 2009/by Tyrepress Editors

Conti CEO: Company Planning to Keep Tyre Unit

Continental’s new chief executive Elmar Degenhart recently told reporters that management board's preference is to “keep our portfolio the way it is today.” Newspapers and wire services have been quick re-report Degenhart’s remarks owing to the company’s previous position that it would consider the sales of the company’s Rubber Group, which includes the tyre business.

Degenhart’s words (spoken in an interview with German automotive industry publication Automobilwoche) follow a string of non-verbal cues that suggest differences of opinions with the company and at major shareholder Schaeffler group. The latest, following Schaeffler repeated failure to include tyres and rubber its plans for a combined Conti/Schaeffler, was the fact that Continental AG apparently had nothing to say about tyres at this year’s Frankfurt Motor Show.

21st September 2009/by Tyrepress Editors

Reitzle to Lead Conti Amidst Board Appointments

Wolfgang Reitzle, CEO of industrial gas company Linde, was confirmed as the new chairman of Continental AG's supervisory board. "We are very pleased that we have been able to persuade Professor Reitzle to take on this challenging mandate," said Schaeffler owner Maria-Elisabeth Schaeffler in a statement. Reitzle has been highly sought after by a number of major firms, including BMW, and served as an executive with Ford Motor Co. The move came after owner Schaeffler Group forced out the previous board chairman Rolf Koerfer, who will nonetheless remain on the board. Also stepping down is board member Michael Frenzel, CEO of travel company TUI.

Meanwhile, the Schaeffler Group recently appointed Dr. Peter Pleus (55) and Norbert Indlekofer (51) to the position of President of Schaeffler Group Automotive. They have been appointed successors to Dr. Elmar Degenhart (50), who was appointed Chairman of the Executive Board of Continental AG on 12 August 2009.

11th September 2009/by Tyrepress Editors

Conti could Issue 1.5 billion euros in Shares: Reuters Reports

Reuters reports have suggested that Continental will issue 1.5 billion euros’ worth of new shares before the end of the year in an attempt to “increase capital,” according to one unnamed source. Schaeffler had initially opposed the plan, since it will reduce the proportion of its shareholding in the company from approximately 90 per cent to 66 per cent. However, in light of a 10 billion euro debt incurred when Conti purchased VDO from Siemens, in addition to its own dedt-pile, Schaeffler now says that the company must “repair its balance sheet” before a merger takes place. The next supervisory board meeting, postponed by Continental until mid-October according to Reuters, could be interesting (see also ‘Schaeffler to Propose Prof Dr Ing Reitzle as Supervisory Chair’).

9th September 2009/by Tyrepress Editors

Schaeffler to Propose Prof Dr Ing Reitzle as Conti Supervisory Chair

Continental AG announced today that the major shareholder, Schaeffler KG, will propose Professor Dr Ing Wolfgang Reitzle as the new chairman of the supervisory board, if he is appointed to the board of Continental AG. Maria-Elisabeth Schaeffler, owner of Schaeffler KG, endorsed the move: “We are very pleased that we have been able to persuade Professor Reitzle to take on this challenging mandate. He is the ideal person to tackle the tasks ahead at Continental AG. His profound knowledge of the industry and his international entrepreneurial experience are excellent prerequisites for this post. We have complete trust in him.”

9th September 2009/by Tyrepress Editors

Schaeffler Debt Deal – Paving the Way for a Merger

The Schaeffler Group has moved one step closer towards a merger with Continental AG after reaching an agreement with banks to refinance 12 billion euros in debt. According to a Schaeffler statement, the ball bearing manufacturer’s credit lines have been split into two portions of 4 1/2-year and six-year maturities and will be implemented in several stages. Refinancing deals were arranged with UBS, Royal Bank of Scotland, Unicredit SpA’s HVB Group unit, Commerzbank AG and Landesbank Baden-Wuerttemberg.

19th August 2009/by Tyrepress Editors

Former VW Boss Tipped to Take Conti Supervisory Board Helm

A favourite has emerged from the list of contenders under consideration to head up Continental’s Supervisory Board. German magazine Der Spiegel indicates former Volkswagen chief executive Bernd Pischetsrieder will be the man most likely to fill Rolf Koerfer’s shoes when he steps down. Pischetsrieder was recommended for the role by Martin Blessing, CEO of Commerzbank, […]

18th August 2009/by Tyrepress Editors

S&P Downgrades Conti Following Neumann’s Departure

Dow Jones reports that Standard & Poor's has reduced Continental AG’s credit rating two notches in light of concerns it has over the influence major shareholder Schaeffler has on the company's strategy and credit quality. The downgrading occurred a day after Karl-Thomas Neumann stepped down from Conti’s Executive Board following a power struggle with the Schaeffler, and according to Standard & Poor’s, Neumann’s resignation "heightens our concerns of a negative influence of Schaeffler on Continental."

14th August 2009/by Tyrepress Editors

Continental Reshuffles Executive Board

Following a meeting of the Supervisory Board of Continental, the company’s Executive Board has been reshuffled. Effective immediately, the Supervisory Board appointed Dr. Elmar Degenhart, formerly president of the Schaeffler Group’s Automotive Division, as chairman of the Executive Board.

13th August 2009/by Tyrepress Editors

Reports: Conti Execs Fear Contracts Will Follow Neumann out the Door

Continental AG said contracts, customers and employees could be lost if Dr Karl-Thomas Neumann is pushed out of his chief executive position. Quoting a document submitted to representatives of supervisory board members, Dow Jones Newswires reported that the group’s communications committee for management said: “We know that some of our customers are considering moving their business to rivals…We also run the risk of the attrition of further managers, at all levels, and the company losing its attractiveness as an employer.”

7th August 2009/by Tyrepress Editors