Germany's Conti finally says 'Yes' to Schaeffler deal

0 Comments | AFP, August, 2008

BERLIN (AFP) — After weeks of hard bargaining, German tyre maker Continental finally said 'Yes' on Thursday to the advances of compatriot Schaeffler to create a new global auto parts giant.

But family-owned Schaeffler was forced to raise its offer to 75 euros (111.15 dollars) per share from 70.12 euros and had to give a series of pledges, including not to own more than 49.99 percent of Continental before 2012, to seal the deal.

The new offer values Continental, which is still digesting a major acquisition it made last year, at over 12 billion euros, nearly 40 percent more than it was worth before Schaeffler made its unsolicited original bid in July.

Once combined they will leapfrog Bosch, also a German firm, as the world's top supplier of automotive...