Schaeffler Group has denied German media reports that it is trying to stall merger talks with its much larger affiliate Continental.
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The two companies were locked in a bitter takeover battle last year and between them have amassed debts of EUR22bn (US$31bn).
Manager Magazin yesterday reported Schaeffler wants to hold off any merger for a year but Schaeffler said both companies were still in talks.
“Schaeffler and Continental are working further on a mergerof the two companies,” spokesman Detlef Sieverdingbeck told Bloomberg News. “Everything else is speculation.”
Schaeffler controls 90.2% of Continental, including 49.9% held directly and 40.3% placed at banks, following the acquisition completed last year. The ownership arrangement results from an August 2008 agreement in which Schaeffler pledged to keep its stake to a minority until 2012 and to retain Continental’s business strategy.
Continental said in May that it might merge operations with Schaeffler to reduce costs. The ball bearing specialist’s products also include transmission parts.
Continental said on 8 June that its supervisory board hoped to decide by the end of July on options for ties to Schaeffler.
