Home Blog Takeover Bid Now In Rethink At 8 Percent

Takeover Bid Now In Rethink At 8 Percent

Release time : 2015-06-12 09:34:48
Schaeffler battle to take control of the Continental Corporation has been diluted to a single digit. The Needle Ball Bearings manufacturer confirmed it owns 8 percent of Continental shares with an option to increase now considered unlikely leaving the 28 percent swaps as an illegal contravention of reporting and notification requirements. Renowned university professor Dr. Mathias Habersack, Chairman of Civil, Commercial, Business and Corporate Law and Board member of the Banking Law Association in Germany has stated the methods used by Schaeffler as a clear infringement of provisions of the German Securities Trading Act. Further legal advices about Water Pump Bearings, states the German Federal Financial Supervisory Authority can in this case impose not only fines, but take more stringent action against Schaeffler to nullify the illegal actions that are so damaging to the market, but also prevent Schaeffler reaping benefits from its illegal methods. CEO Mr. Geissinger has 2 weeks to rethink Schaefflers awkward situation whilst Continental appears quite content to move on with its daily operations. Little wonder Mr. Geissinger is in a hurry to complete a deal with Continental by raising its offer to 75 euros a share to maybe 80 euros. What price for self pride, and will banks agree to increase the size of High Speed Bearings exposure against an Auto market in decline? However, this will not resolve the legal appointment Schaeffler has with German Securities Authority, any deal with Continental CEO Mr. Wennemer now appears premature. Schaeffler in further Rethink today stated it could sell all 8 percent of Continental shares to the market after the bid ends 27 August 2008, leaving behind a fallout of considerable magnitude.