HANOVER, Germany (May 14)—The executive and supervisory boards of Phoenix A.G. have classified Continental A.G.'s takeover offer of about $17.79 per share "reasonable" but stopped short of recommending shareholders accept the offer.
Continental management welcomed the Phoenix statement, saying it affirmed its offer as "fair" to Phoenix shareholders, who have until June 28 to accept Conti's offer. Phoenix's shares have been trading at about $17.79 for the past few weeks, rising to that level from about $14.23 following Conti's announcement.
But labor representatives at Phoenix have voiced their opposition to Conti's offer, saying they are concerned about Continental's penchant of late to source increasing amounts of production in lower-wage countries.
While maintaining a neutral stance on Conti's takeover offer, Phoenix management pointed out to shareholders they continue to pursue an independent course of action.