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.
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By GlobalDataContinental 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.
