Germany’s Continental has rejected an 11.2 billion euro ($17.8 billion) takeover bid by automotive parts maker Schaeffler, The Financial Times reported. Further, Continental called the smaller company’s method of stakebuilding unlawful.
“The offer is highly opportunistic, does not come close to the true value of Continental, does not create trust and lacks a convincing strategic rationale,” Continental said in a statement.
Schaeffler unveiled an offer for tire and parts group Continental AG after it emerged the bidder had amassed a 36 percent stake in the target.
Privately held Schaeffler said it would pay 69.37 euros per share for Continental, a 28 percent premium to Continental’s July 11 close, The Daily Deal reported.