Schaeffler to Sell 10% Stake in Continental

Germany's Schaeffler AG plans to divest 20.8 million shares, or 10.4%, of Continental AG to help reduce its debt. The sale is expected to raise about €1.6 billion ($2.1 billion).

The ball bearings maker took on about €10 billion ($13 billion) in debt when it acquired more than 90% of Conti in 2008. The company had reduced that burden to €7.1 billion ($9.2 billion) by the end of June.

Schaeffler will own 49.9% of the tire and auto parts supplier after the stock sale and remain its largest shareholder. Schaeffler has agreed not to sell additional Conti shares for six months.

The company says it plans a "long-term strategic participation" in Conti.