It began as the classic hostile move. When German industrial group Schaeffler KG brandished its unwanted bid for tiremaker Continental AG in late July, it revealed that it had quietly amassed a 36% stake in the target, largely through derivatives.
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Continental denounced the €70.12 a share bid as inadequate and lined up an eight-bank brigade team to defend against the €10.5 billion ($15.6 billion) offer. Then tensions eased. By Wednesday, Continental reported that talks were ongoing even as it urged shareholders to reject the bid. The suitor signaled that it might up the offer. In midafternoon Frankfurt trade, Continental shares were up nearly 6% to €73.50, and rumors swirled that a €78 a share bid might be coming down the road. - Barbara Rudolph
See TheDeal.com: Tiremaker Continental keeps talking
