According to various news reports, syndication of the 16.1 billion euro ($21.92 billion) loan behind Schaeffler Group’s bid for Continental AG is “on hold” because of the recent turbulence in credit markets. Unnamed bankers close to the deal told Reuters the loan had been paused while Schaeffler assessed its position. Syndication of the loan is expected to resume when there was clarification of Schaeffler’s strategy, the bankers said. Later reports quoted a Schaeffler spokesman as saying the company has binding financing commitments from six banks on the deal.

The huge loan was arranged by Bayerische Hypo-und Vereinsbank, Commerzbank, Dresdner Kleinwort, Landesbank Baden-Wurttemberg, Royal Bank of Scotland and UBS, with the acquisition of a 49.99% minority stake in Continental in mind. However, after financial turmoil caused share prices to fall, Schaeffler was left with a 90.19% majority stake in late September. (Tyres & Accessories/Staffordshire, U.K.)