HANOVER, Germany (June 10, 2004) — Continental A.G. reports it has acquired more than 50 percent of the outstanding shares of industrial rubber products maker Phoenix A.G., and management is confident it can achieve its goal of garnering 75 percent before the June 28 deadline.
Conti is buying Phoenix shares at 15 euros ($18) apiece. It announced its open bid for Phoenix in April, seeking to strengthen its ContiTech non-tire products business internationally, especially in the fluid transfer, conveyor belt and air spring systems businesses. Phoenix had sales of $1.24 billion last year, whereas ContiTech's sales were $2 billion.
The executive and supervisory boards of Phoenix earlier classified Conti's takeover offer “reasonable” but stopped short of recommending shareholders accept the offer.
Should Conti succeed in its bid, it will have spent close to $275 million in buying up shares. Conti claimed at the time it launched its bid to have the support of Phoenix's two largest shareholders, who controlled 37 percent of the firm's stock at that time.