Financial Times reports over the weekend say that Continental AG received a takeover offer by German auto parts maker Schaeffler Group.

Schaeffler has annual revenues of around $14.3 billion, while Continental is nearly twice the size, with annual sales of about $26 billion.

According to the FT report, the Royal Bank of Scotland is arranging the financing for the deal, and Schaeffler is prepared to make a hostile run at Continental if the company rejects its offer to hold talks.

At the close of business last week, Continental shares fell 7.6 percent to 53.96 euros. (Courtesy of Tire Review)