As divorce lawyers and Hollywood moguls well know, a fair deal is one in which both sides walk away unhappy.
That appears to be the outcome of the high-profile takeover battle waged between Germany's Schaeffler KG and Continental AG. It ended with a broad compromise that will give ball bearing-maker Schaeffler effective (but not outright) control over its target.
Continue reading below
Schaeffler will be allowed to buy up to 49.9% of the tire and brake maker after sweetening its per-share bid to €75 from €70.12, valuing the entire company at €12.1 billion ($17.9 billion). It also promised not to break up Continental, fire workers or jettison either its brand or Hanover headquarters. Those concerns were raised during the takeover fight that involved nearly every major investment bank on the planet.
Walking away, literally, is Continental CEO Manfred Wennemer, who opposed Schaeffler's approach. He will resign on Aug. 31. - Barbara Rudolph
See TheDeal.com: Schaeffler, Conti call truce (subscription required)
