Continental chairman quits after dispute with Schaeffler

Continental's chairman Hubertus von Gruenberg quit today in a row with its biggest shareholder, Schaeffler Group.
 
Von Gruenberg resigned with immediate effect as chairman and supervisory board member of automotive supplier Continental, after the board met to discuss its future with its controlling shareholder Schaeffler.
 
Schaeffler, whom von Gruenberg has served with in the past as an adviser, took a direct stake of almost 50 percent in Continental and transferred another 40 percent stake to banks to ensure it remains a minority shareholder under a deal it struck last year to end a bitter takeover row.
 
But the deal has blown a 6 billion euro hole in its balance sheet, just as it needs to make a 900 million euro interest payment this year on the syndicated loan that financed the deal, and the family owners stand to lose control of the group.
 
Von Gruenberg, who was expected to supervise and accompany the carve-out of Conti's Rubber Group, attacked Schaeffler after his last board meeting as chairman.
 
¡°In my opinion, Schaeffler's conduct has clearly violated the spirit of the investor agreement reached between the two companies,¡± he told reporters.
 
Continental said labor representative Werner Bischoff, its deputy chairman, would lead the board until a new chairman can be elected.
 
Schaeffler adviser Rolf Koerfler had been slated to become chairman on Friday, although this was held up by a court injunction.
 
Germany's Robert Bosch said it was not in talks to buy part or all of Schaeffler after a newspaper report said it had signaled interest in Schaeffler's profitable industrial business.
From: Automotive News Europe

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