HANOVER, Germany (March 29)—Continental A.G. has launched a bid to buy all the outstanding shares of fellow German rubber products maker Phoenix A.G. in a deal valued at nearly $275 million.
By acquiring Hamburg, Germany-based Phoenix, Conti will strengthen its ContiTech non-tire products division internationally, especially in the fluid transfer, conveyor belt and air spring systems. Phoenix had sales of $1.24 billion last year, while ContiTech's sales were $2 billion.
Conti's bid is $18 per share and the firm claims to have the support of Phoenix's two largest shareholders, who control 37 percent of the stock.