Knorr-Bremse Vows to Pursue Haldex Takeover without Board Backing

German braking system supplier Knorr-Bremse AG says it will continue its efforts to acquire Swedish rival Haldex AB, even though Haldex’s board has withdrawn support for the deal.

Last December Knorr-Bremse prevailed in a bidding war with ZF Friedrichshafen AG in a tender offer for 86% of Haldex. ZF claimed its own offer was pre-approved by regulators and warned that a takeover by Knorr-Bremse would face strong anti-competition headwinds.

Earlier today Haldex’s board agreed with ZF’s assessment. The board says feedback from antitrust agencies has convinced it that “the probability of regulatory approval (is) so low” that it no longer supports the bid. Knorr-Bremse shrugs off the board’s decision.

ZF, which holds a 20% stake in Haldex, says it won’t reopen its bid but vows to conduct itself as a “responsible shareholder.” ZF’s offer at 110 kronor ($12) per share was trumped by Knorr-Bremse’s 120 kronor bid.