Continental shares placed at 77.50 euros

FRANKFURT, Sept 25 Tue Sep 25, 2012 3:19am EDT

FRANKFURT, Sept 25 (Reuters) - German automotive parts supplier Schaeffler has sold 10.4 percent of the shares of its partner Continental AG for 77.50 euros each, its banks holding said on Tuesday.

Schaeffler reaped 1.6 billion euros ($2.1 billion) from the share sale which according to a source close to the deal was two times subscribed.

The proceeds from the sale will go entirely to reducing just over 5 billion euros in debt, weighing on Schaeffler Holding, which Schaeffler financial chief Klaus Rosenfeld said would amount to about 3.5 billion euros after the transaction.

Continental shares lost 3.9 percent in early trade. ($1 = 0.7743 euros) (Reporting by Alexander Hübner and Arno Schuetze)

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