Continental AG, Europe's second- largest car-parts maker, probably will offer primary investor Schaeffler Group four board seats tomorrow, two people close to the supervisory board said, Bloomberg reported.
Chairman Hubertus Von Gruenberg, whom Schaeffler has said is "sabotaging" efforts to integrate the companies, may fight on with the board's support or step down, said the people, who didn't want to be identified because the meeting isn't public.
Continental will free up the positions because the Hanover, Germany-based manufacturer wants Schaeffler to abide by an August agreement that calls on the ball-bearing maker to limit its Continental holding and support management's strategy, the people said. The transfer of four seats was part of the deal.
Continental scheduled the emergency board meeting after Schaeffler called for von Gruenberg to quit. Schaeffler, owned by the founder's widow, Maria-Elisabeth Schaeffler, and son Georg, is battling for control of the auto-parts and tire maker after accumulating 11 billion euros ($14 billion) in debt by purchasing 90.2 percent of the shares. Continental's stock has plunged 77 percent below the 75 euro-a-share purchase price.
A woman who answered the telephone at von Gruenberg's office at Continental directed queries to the press office, which declined to comment. Schaeffler spokesman Detlef Sieverdingbeck also declined to comment.
