Vitesco says new Schaeffler offer for EV merger 'inadequate' (updated)

Schaeffler AG

27/11/2023 10:31

(Updates throughout with detail)
       Nov 27 (Reuters) - German automotive supplier Schaeffler
 SHA_p.DE  raised its offer price for shares in Vitesco
Technologies  VTSCn.DE  on Monday, as a goodwill gesture, but
Vitesco management said the new offer was "inadequate".
    Germany's billionaire Schaeffler family holds all voting
rights and 75% of shares in its namesake supplier of electric
vehicle components. It also owns close to 50% of Vitesco, making
the likelihood the merger will be agreed all but certain.
    However, under pressure from some investors, who said the
original offer of 91 euros per share was too low, it increased
its offer price to 94 euros ($102.53) per share in Vitesco.
    It said its decision underscored its confidence in the
synergies made possible by combining the businesses.
    Vitesco said in a statement the management and supervisory
boards also considered the new price "inadequate from a
financial point of view," but added it could provide an exit
opportunity for risk-averse or short-term investors in the
current market environment.
    The companies have agreed to merge the two groups to create
a more competitive supplier in the electric vehicle segment, as
well as simplifying the Schaeffler family's empire, which
includes stakes in Vitesco and Continental AG  CONG.DE .
    The offer period will expire on Dec. 15, and any transaction
would be completed in the fourth quarter of 2024.
($1 = 0.9168 euros)

 (Reporting by Amir Orusov and Christina Amann, Editing by
Rachel More and Barbara Lewis)
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