Porsche AG CFO Holger Haerter was the first to come out and join Volkswagen in favour of the deal, telling Frankfurter Allgemeine Zeitung he would back Schaeffler Group’s takeover bid. Haerter said the product portfolio of both companies complement each other and set out to allay fears that employees of Continental would face jobs risks as a result of the deal.
Haerter said Porsche would welcome a merger between the two because a carmaker would prefer working with a supplier that is economically healthy: “In my opinion, Schaeffler is financially a very solid company, has a high equity position and is committed throughout.”
Meanwhile, the head of GM Europe echoed Volkswagen AG chief executive Martin Winterkorn’s sentiment that Continental AG and Schaeffler should avoid a long takeover battle. Carl-Peter Forster told WirtschaftsWoche he would not like Continental AG and Schaeffler Group to be locked in a long, drawn out takeover battle.
Forster warned that any deal should ensure that the integration of Siemens VDO does not suffer, as may be the case if senior managers at Continental were to leave the company.
Contrary to earlier reports that it didn’t have the necessary loans secured, Schaeffler’s financial readiness seems to suggest it is on the brink of buying Conti. According to Financial News Online, the six banks arranging the financing of Schaeffler’s bid could launch the syndication of the debt as early as this week.
Commerzbank, Dresdner Kleinwort, HVB, Landesbank Baden-WÜrttemberg, Royal Bank of Scotland and UBS, the lead arrangers, have reportedly agreed to fully underwrite the loan. Financial News Online reports that the syndication of this debt would be easier if the bid went “friendly.” (Tyres & Accessories/Staffordshire, U.K.)
