Schaeffler KG has raised its takeover offer of auto parts maker Continental AG. The German group made the move following a calculation of the three-month average price for shares of Continental as calculated by German watchdog BaFin.
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Schaeffler said that it is now offering EUR70.12 (US$111.16) per Continental share. Last week, Schaeffler offered EUR69.37 per share in cash, valuing Continental at EUR11.3bn ($US18bn).
However, under German law, the offer price has to match the average share price of a company over the past three months. Schaeffler said it received the regulator’s calculation of the average share price on Monday, and adjusted the offer accordingly.
Parts maker Continental AG rejected the initial takeover offer from ball bearing specialist Schaeffler saying the “opportunistic approach” did not reflect its full value and there is no convincing case to combine the businesses.
It also claimed Schaeffler was trying to achieve control in an unlawful manner and that Continental is strongly positioned in its current form for the future.
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By GlobalDataIncreasing grip on Continental ‘unstoppable’ – analyst
