Mexican Media Brands
Schaeffler Cuts IPO by 55%
Schaeffler AG, which announced plans less than three weeks ago to sell 166 million non-voting shares in an initial public offering later this year, now intends to offer only 75 million shares.
#economics
Share
Schaeffler AG, which announced plans less than three weeks ago to sell 166 million non-voting shares in an initial public offering later this year, now intends to offer only 75 million shares.
The German bearing supplier is scaling back the IPO because of an expected negative impact on engine production caused by Volkswagen AG's diesel engine emission cheating scandal.
Schaeffler had hoped to raise €2.5 billion or more with the IPO. Now, with an expected per-share price of €12-€14, the company is likely to gain €975 million. The funds will be used to pay down debt incurred in 2008 from a poorly timed takeover bid for Continental AG.
Schaeffler started 2015 with about €5.8 billion in debt. The company's revenue in the first half of the year grew 5% to €6.7 billion.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.