Donnerstag, 27. Oktober 2016

Continental advises shareholders not to accept Schaeffler offer

Continental open for negotiations in the short-term

(lifePR) (Hannover, ) .
- The Supervisory Board and the Executive Board of Continental AG recommend that shareholders decline takeover offer made by Schaeffler KG
- Advances in talks have been reached
- Further negotiations necessary and targeted in the short-term

Today the Supervisory Board and Executive Board of Continental AG released their joint statement regarding the voluntary public takeover offer (cash offer) of Schaeffler KG (Section 27 of the German Securities Acquisition and Takeover Act, WpÜG). They recommend that the shareholders not accept the offer. The following reasons were given for their dismissive stance:

- The price of €70.12 in cash per share as offered by Schaeffler KG is inadequate from a financial point of view. The bidder's offer is equivalent only to the legally required minimum price and, in the opinion of the Supervisory Board and Executive Board, does not reflect the longterm value potential of the company. The opinions obtained from the investment banks Goldman Sachs and JP Morgan by the Supervisory Board and Executive Board state that the offer does not value the company adequately.
- In case of a takeover tax disadvantages and increased refinancing costs are likely to arise.
- From the standpoint of Continental AG, the economic advantages presented by a merger with the Schaeffler Group are limited. There is the potential to leverage synergies primarily in the production of transmissions and, in the future, in the field of hybrid technology. At the current point in time, development partnerships in these areas already exist with other companies.

During the Supervisory Board meeting this Wednesday, the Executive Board presented an update on the talks held with Schaeffler Group and the specific progress made. The Executive Board will continue its negotiations in the shortterm with the full backing of the Supervisory Board. Continental has the goal of reaching a solution to the benefit of the company as soon as possible. The Executive Board continues to evaluate all options of action with the full support of the Supervisory Board.

The full text of the statement will be available during the course of the day on the internet at
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Über Continental Reifen Deutschland GmbH

The Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate. Continental is also a competent partner in networked automobile communication. Today, the corporation employs approximately 150,000 people at nearly 200 locations in 36 countries.

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