UPDATE: Conti Confirms Possible Restructuring

Continental AG confirms a Bloomberg News report on Monday that it is considering a major restructuring that could include spinning off certain operations as publicly listed companies.

Conti also confirms the discussions are at an early stage, saying the options are “wide open” but may not lead to action. Bloomberg’s sources say one scenario would create a holding company for existing divisions, some of which could be combined. Conti then might list shares in more profitable operations, such as its tiremaking business.

Conti currently operates two major divisions: automotive and rubber. Bloomberg notes that separating business units with little or no overlap is a growing industry trend and has been generally supported by shareholders.

Such a plan at Conti would need the blessing of the Schaeffler family, whose Schaeffler Group acquired about 45% of the company in 2008. The ill-timed takeover cost €17 billion ($20 billion) and nearly bankrupted Schaeffler.​​