German car parts maker Schaeffler Group said it now controls 36 percent of Continental AG, which it acquired through third parties.
Despite reports that Schaeffler Group only wants to maintain a minority stake in Continental, and not mount a full-blown takeover bid, Continental executives are reportedly working on plans to thwart any outside bid.
German law, though, requires a holder of at least 30 percent in a company to make a formal takeover offer, the reports said.
Continental has admitted having contact with representatives of the Schaeffler Group, which is privately held.
Newspaper Handelsblatt said Schaeffler accumulated its stake in Continental through stock purchases made for it by a number of banks. (Courtesy of Tire Review)