Continental secures loan for Siemens acquisition
Continental AG is closing syndication of a 13.5 billion euro loan package that will enable it to purchase Siemens VDO Automotive AG.
Thirty-nine banks are participating in the financing, according to Continental officials.
"We were able to rely on banks with whom we have had dealings, while simultaneously winning over new banks, particularly from Asia, a region in which we are growing," says Continental CFO Dr. Alan Hippe.
Continental plans to repay the loan via "an increase in shareholders' equity not exceeding 10% of outstanding shares and by issuing bonds."
Continental officials say they expect approval of the Siemens deal to be given by the end of the year.