Schaeffler’s €11.35bn ($14.61bn) hostile bid for rival Continental, the world’s biggest car parts supplier, was one of the most daring Germany has seen. The privately-owned industrials group secretly gained control of 36 per cent of Continental by exploiting a legal loophole.
When its bid was announced, Schaeffler held 2.97 per cent of Continental’s shares and another 4.95 per cent in physically settled call options. But Schaeffler had also entered into cash-settled equity swaps for approximately 28 per cent of Continental’s shares.
