MUNICH, Germany (July 14, 2008) — Continental A.G. has confirmed it has spoken with Schaeffler Group about that company's “possible investment” in Conti.
The conversation took place at the end of last week, the company said in a statement, and no further discussions took place.
“As soon as Schaeffler Group has substantiated its plans, the management board of Continental will evaluate these and communicate its views in due course,” the statement said.
The Saturday edition of the Financial Times reported that Germany's Schaeffler wants to acquire Continental.
A combination of the two companies would create an automotive parts-maker with annual sales of more than $55.5 billion. By comparison, the world's largest automotive supplier, Robert Bosch, had total sales of $45 billion in 2007.
The Financial Times Deutschland cited unnamed sources as saying Schaeffler, a German family-owned maker of ball bearings, might make a $15.9 billion offer for Conti today. The report also said Schaeffler is also prepared to launch a hostile takeover bid if the tire and electronics firm Continental mounts resistance to the offer.