ZF Vows to Drop Haldex Bid Unless It Gains 50% Stake

Powertrain supplier ZF Friedrichshafen AG says it will abandon its bid to buy brake system maker Haldex SA if it fails to gain at least half the company’s shares by Oct. 3.

ZF, which previously acquired 21.4% of Haldex, is offering 120 kronor ($18) per share. That’s 5 kronor less than the rival Germany brake supplier Knorr-Bremse AG has bid. ZF says it won’t raise its offer. The company argues that Knorr-Bremse is likely to face anti-competition challenges if its bid prevails. ZF already has cleared regulatory hurdles.

Haldex’s board has unanimously recommended that shareholders accept the ZF bid. But CEO Stefan Sommer concedes his company has not been able to increase its stake because stockholders are holding out for a higher price.

Haldex shares have been trading above 125 kronor since Knorr-Bremse’s 125-kronor bid on Sept. 16. Sommer declares to reporters that ZF won’t continue the three-month-old bidding war.