Rumors of a renewed interest from private equity firms in Continental AG sent shares of the German auto parts supplier 7% higher, making them Wednesday's second-biggest gainer on Germany's DAX,
according to Reuters.
The company revealed it was fielding interest from unnamed financial buyers last September, after talks with a consortium consisting of General Capital Group, Permira, Goldman, Sachs & Co., Kohlberg Kravis Roberts & Co. and Bain Capital LLC came to naught by mutual agreement in 2006. Since then Continental has grown significantly, doubling its size last year with the acquisition of Siemens AG's VDO
auto electronics unit for $15.6 billion. Still with debt for megabuyouts still extremely difficult to obtain, the chance for an LBO may be remote. -
George White
See Reuters storySee The Deal.com story on Continential/VDO acquisition
