HANOVER, Germany (July 25, 2008) — The supervisory and executive boards of Continental A.G. have turned down an $11.2 billion offer from Schaeffler Group after what Conti described as “intensive” deliberations.
The boards said the takeover offer isn't adequate nor in the best interests of the company. In particular, the Conti boards said the offer doesn't tale tax disadvantages and increased refinancing costs triggered by the bid into account.
All board members rejected the offer, Conti said.
Schaeffler, which acquired more than 30 percent of Conti's stock, has offered to acquire the Hanover-based tire and automotive company for the equivalent of $110.20 cents per share at the current exchange rate. At the time, Conti called the offer “highly opportunistic, does not come close to the true value of Continental, does not create trust and lacks a convincing strategic rationale.”
In supporting all the actions taken by the executive board, the supervisory board said the two bodies “will continue to act in the best interest of the company and all of its stakeholders.”