Schaeffler to sell stake in Continental, report says

Schaeffler to sell stake in Continental, report says

Schaeffler Group is working on a plan to sell some of its shares in fellow German automotive supplier Continental AG, the Financial Times Deutschland reported.

Schaeffler wants to sell these shares this month, the paper said, citing sources.

Schaeffler will retain more than a 50 percent stake in Continental but the exact size of the stake to be sold is being discussed, the report said Thursday.

Schaeffler controls 75 percent of Continental's shares with some shares held by banks on its behalf.

Continental CEO Elmar Degenhart said at a briefing in Frankfurt that the report is "speculation."

Schaeffler took control of the much larger Continental two years ago after launching a hostile $18 billion takeover bid.

Schaeffler, the world's second-biggest maker of roller bearings, is seeking to reduce more than 10 billion euros in debt accumulated from acquiring shares in Continental during the takeover in 2008.

Continental said Jan. 28 that it's pursuing a merger with Schaeffler in the medium term.

On Thursday, Degenhart said there are currently "no joint activities" to prepare a merger