Conti to spin off tyre, rubber unit

ERJ staff report (DS)

Hanover -- The merged Continental-Schaeffler group is to spin off its rubber unit, which encompasses its tyre activities and the ContiTech activity. There are no formal plans to sell the business, just to prepare it to become a fully independent company. In a statement, Continental said, "the Supervisory Board took note of the proposal made by the Executive Board, to initiate a process to create an organizationally and legally independent Rubber Group (carve out). This process will be closely accompanied by the current chairman of the Supervisory Board, Hubertus von Grünberg."

Simultaneously, the executive board is preparing plans to merge the respective automotive businesses.

Conti has also restructured its supervisory board, with the result that at least four people nominated by Schaeffler are likely to serve on the board following the shareholders' meeting in April. The Schaeffler Group has proposed Maria-Elisabeth Schaeffler, Georg Schaeffler, Jürgen Geißinger and Rolf Koerfer as their candidates, who - just like guarantor and former German Chancellor Gerhard Schröder - were invited to the Supervisory Board meeting.

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Press release from Continental

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