Saudi Arabia attracts $14.9 billion investments in AI as LEAP25 kicks off in Riyadh    Arab, Islamic world slams Netanyahu's remarks against Saudi Arabia, calling it unacceptable and irresponsible    Saudi Crown Prince and IOC President discuss aspects of enhancing cooperation    Saudi, Argentinean foreign ministers discuss regional developments    Saudi, Ukrainian FMs discuss Ukrainian-Russian crisis in phone call    CyberArrow grows regional presence by expanding operations in Saudi Arabia    How amana helps traders and investors in MENA build wealth    Cold weather continues hitting most Saudi regions as Turaif records lowest temperature with minus 2°C    Israeli army withdraws from Netzarim Corridor as part of ceasefire deal with Hamas    Trump claims talks with Putin on ending Russia-Ukraine war, Kremlin remains silent    Lebanese President affirms new government is non-partisan, focused on national interest    Trump rules out deporting Prince Harry, cites marital troubles as reason for leniency    Sharifa Al-Sudairi makes historic debut at Asian Winter Games    Jaecoo J8 launches in Saudi Arabia, marking a new milestone in the Middle Eastern off-road market    Al Nassr reclaims third place with 3-0 victory over Al Fayha as Jhon Durán shines    Ivan Toney's brace secures Al Ahli victory over Al Fateh in Saudi Pro League    Karim Benzema's last-gasp winner sends Al Ittihad to the top of Roshn Saudi League French striker seals dramatic 2-1 victory over Al Taawoun with stoppage-time strike    Salvador Dalí art comes to India for the first time    GEA hosts mass wedding of 300 couples at "Night of a Lifetime" celebration during Riyadh Season 300 cars and housing as gifts for the newlyweds    Food Culture Festival kicks off in Riyadh's Diplomatic Quarter    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Schaeffler limits Continental stake
Published in The Saudi Gazette on 22 - 08 - 2008

Auto parts maker Continental AG said Thursday it had ended a weeks-long standoff over a takeover bid from smaller rival Schaeffler KG after the suitor raised its offer and agreed to limit itself to a minority stake.
But the deal claimed a prominent victim: Continental chief executive Manfred Wennemer, who had led resistance to a deal with Schaeffler. The 60-year-old “asked the supervisory board to be released from his responsibilities” by the end of August, Continental said.
Continental had repeatedly rejected the offer Schaeffler made last month. It said in a statement the deal now reached with the privately held company offers “an acceptable overall concept.” Continental said Schaeffler had agreed to increase its offered price per share to $110.50 from $103.31. Continental did not give an overall value for the new offer.
Schaeffler also agreed to limit its stake to a maximum 49.99 percent for four years, Continental said in the statement.
Ferdinand Dudenhoeffer, a professor of automotive economics at the University of Gelsenkirchen, estimated that buying just short of half Continental's stock would cost Schaeffler between and $6.6 billion and $7.4 billion.
He said it was a “sensible and forward-looking deal” that allows the companies to complement each other and realize cost advantages in areas such as the powertrain business, in which Continental said they would examine possible “strategic cooperation projects.” Continental said Schaeffler committed itself “to support the ongoing strategy and business policies of Continental AG's management board while maintaining its current market and brand appearance, and to not demand a sale of activities or seek other material structural measures.” Continental makes products including tires, brakes and interiors for cars and trucks.
Wennemer and union representatives had voiced fears that Schaeffler might sell the company's tire division if successful in its takeover bid.
Wennemer has been CEO of Continental since September 2001 and helped oversee its expansion and shifting of production to low-cost markets.
His company said a successor would be appointed “in the immediate future.” Continental said that, under the deal, former German Chancellor Gerhard Schroeder would act as a “guarantor for ensuring the interests of all stakeholders of Continental.” Schaeffler makes ball bearings for the industrial, aviation, aerospace and the automotive sectors as well as components for engines, transmissions and drive trains.
Schaeffler chief executive Juergen Geissinger said his company had always sought “a constructive agreement.” He said in a statement that the deal allows for “the combination of two German technology leaders that will deliver innovative solutions for the future challenges of the automobile industry.” Shares of Continental were up 0.6 percent at $109.02 in Frankfurt after the announcement.
Also on Thursday, BaFin, Germany's financial regulator, said it found no indication that Schaeffler violated any disclosure rules when it moved to acquire 36 percent of Continental's shares.
The company acquired the stake before announcing its intent to take a controlling stake in Continental. BaFin said that did not violate any law.
Under German securities law, investors must disclose their stakes when they cross thresholds ranging from 3 percent to 30 percent.


Clic here to read the story from its source.