Haldex Cautiously Backs Knorr-Bremse Bid

Swedish brake systems supplier Haldex SA has recommended its shareholders accept a tender offer from German competitor Knorr-Bremse AG. But the Haldex board reiterates its warning that the bid faces stiff regulatory challenges.

Rival suitor ZF Friedrichshafen AG dropped out last month after failing to gain a majority of Haldex shares with its 120-kronor ($18) bid. ZF had already cleared regulatory hurdles, but it refused to match Knorr-Bremse’s 125-kronor counteroffer.

Haldex acting Chairman Magnus Johansson tells Reuters the board, which favored the ZF offer, continues to see “considerable risk” in the higher bid. He adds that Knorr-Bremse hasn’t explained how it will overcome anti-competition challenges from the European Commission.