At a meeting of the Continental AG Supervisory Board this week, resistance to Schaeffler’s current takeover bid was repeated.
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A statement issued by the company said that the Supervisory Board and the Executive Board of Continental AG have, after intensive deliberation, come to the strong conviction, that ‘the announced takeover offer by Schaeffler Group does not value the company adequately and fails to reflect the best interest of the company’.
In particular, the statement added, it does not take tax disadvantages and increased refinancing costs triggered by such a bid into account. All members of both boards have declined the offer in its current parameters and fully support the continued legal examination by relevant financial supervisory authorities.
Continental is asking a number of investment banks – including Goldman Sachs and JP Morgan – to help it devise a defence strategy against a hostile takeover.
However, Continental also said that an agreement with Schaeffler is ‘desirable’ and that it would talk to Schaeffler should the firm be willing to negotiate either on reaching an ‘adequate premium’ or limiting the size of its targeted stake to an ‘acceptable’ level.
See also: Schaeffler launches hostile bid for Conti
