Continental chairman does not want takeover fight
HANOVER, Germany (Reuters) - The chairman of Continental AG (CONG.DE) would prefer to avoid a damaging battle if a takeover of the German automotive supplier seems inevitable, a German magazine quoted him as saying.
"What we need is reason, not a fight at any price," Hubertus von Gruenberg told Manager Magazin in portions of an interview released a day before a supervisory board meeting on Wednesday to discuss an unsolicited bid from the rival Schaeffler group.
"If a takeover is likely, then I prefer that we don't leave scorched earth behind," he added.
Schaeffler has offered the legal minimum of 70.12 euros per share, valuing Continental's equity at roughly 11.3 billion euros ($17.95 billion). Continental's chief executive has rejected the offer.
Von Gruenberg, a powerful figure who made headlines in February as chairman of ABB (ABBN.VX) for sacking CEO Fred Kindle, told the magazine he could "well imagine particularly in the auto parts business forms of financing outside of the exchange-listed joint stock company".
He called for a swift resolution of the offer so management can turn its full attention back to tackling the significant problems facing the industry.
This marks the first time Continental's chairman has taken a position on Schaeffler. Last week he simply released a statement saying the board would examine an offer in the interest of all shareholders and stakeholders.
Von Gruenberg's role has come under increasing scrutiny since he is known to have close ties to Schaeffler CEO Juergen Geissinger, having served on the company's non-executive board.
Both men also previously led ITT Automotive Europe, later Continental Teves.
In an interview with Germany's Focus magazine in December 2006, von Gruenberg said he had little sympathy for the capricious mood swings of the stock market, adding that going private offered some corporations a boost.
"Especially in the production of durable goods, in other words that in which Germany is strong, the quarterly thinking and share-price orientation of investors as well as the formal regulations can mean great competitive disadvantages," he said.
Only a few years after the government first allowed companies to sell equity stakeholdings tax-free, von Gruenberg told Focus the days of the "good old Germany Inc" system of cross-shareholdings were over.
Shares in Continental were up 0.8 percent at 72.25 euros by 12:24 p.m. GMT (8:24 a.m. EDT).
(Reporting by Christiaan Hetzner; Editing by Quentin Bryar)
