LONDON (Thomson Financial) - The private German engineering firm Schaeffler has approached Continental AG, about a takeover that could value the tyre maker at over 10 billion euros, the Financial Times reported Friday, citing people with knowledge of the deal.
On its website, the FT said Bavaria-based Schaeffler was 'looking to engage with Continental' late Friday but was 'prepared to go hostile if its overtures were rejected'.
Concerns about falling car sales because of the credit crunch and the rising cost of raw materials have hit Continental and other European automotive suppliers and tyre makers.
On Friday, shares in the company fell 7.6 percent to 53.96 euros on Frankfurt's DAX after a broker downgrade from Merrill Lynch. tf.TFN-Europe_newsdesk@thomson.com afp/ak COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.