Heavily indebted Continental plans to raise around EUR 1bn in capital, the Financial Times Deutschland reported, citing financial sources.

CEO Karl-Thomas Neumann will present the supervisory board his plans for the capital hike at the end of July.

However, it is questionable whether Conti‘s major shareholder Schaeffler will give consent to such a step. On Monday, negative signals came from the family-run company.

A share issue would dilute Schaeffler’s 90% shareholding and would have a negative effect on the firm, which paid EUR75 per Conti share, with the stock now worth less than EUR30.

A Schaeffler spokesman said only that the firm did not want to comment on speculation. Conti also declined comment.