Continental AG has rejected a takeover offer from German ball bearing manufacturer the Schaeffler Group. The firm's offer "does not come close to the true value of Continental," say Continental officials.
They also called the offer "opportunistic" and lacking "a convincing strategic rationale."
In a statement released earlier today, Continental said the Schaeffler Group "has secured access to 36% of the outstanding capital of Continental in an unlawful manner -- with the help of derivative positions and collaborating banks.
"This would result in a comfortable voting majority at the shareholders meeting and may even lead to a qualified voting majority."
Schaeffler's offer, according to Continental officials, entailed acquiring a stake of more than 30%. However, Continental's executive board "was willing to support a financial investment of 20%."
At the end, Continental's board concluded that "the strategic benefits of a closer collaboration of both companies are very limited. Schaeffler would benefit from Continental, but Continental not from Schaeffler."
