Schaeffler Grouup is looking to increase its influence at Continental by reshuffling the company’s supervisory board.
Schaeffler gained control of Continental earlier this month by raising its stake to just below 50%. According to Welt Online, Schaeffler has demanded the withdrawal of all ten Continental shareholder representatives on the board.
The company does not want to wait for Continental’s annual shareholder meeting set for April 23rd and instead is calling for an extraordinary meeting, according to the report.
The demands breach the terms of an agreement between Schaeffler and Continental dating back to last summer. Then Schaeffler was attempting a hostile takeover of Continental, but instead agreed to keep its shareholding at below the 50% mark until 2012. It also agreed to just four representatives on the Continental board.
Two banks now hold a further combined 36% stake in Continental. They are holding these shares for Schaeffler.