Continental AG majority owner Schaeffler AG is reportedly considering an initial public offering next year in Germany, according to a Bloomberg news report.

The report said that unidentified insiders told Bloomberg that Schaeffler is "discussing options that include a share sale" and that another option on the table "would be bringing in a large investor as an owner alongside the (Schaeffler) family," the owners of the automotive component company.

“This is pure speculation and we don’t comment on it,” a Schaeffler spokesman told Bloomberg.

Schaffler currently holds a 49% stake in Continental, having reduced its holding from 90% when it took on the company in 2008.

“An IPO makes a lot of sense, if Schaeffler wants to keep its Continental stake,” Hans-Peter Wodniok, an analyst at Fairesearch GmbH told Bloomberg. “Schaeffler would get money to reduce its debt and still keep the major influence over the company.”