SCHAEFFLER GROUP yesterday triggered what would be the biggest takeover in Europe this year when it launched a bid for Continental in a deal valuing the German tyre and automotive company at about €11.2 billion.

Schaeffler said it held 36 per cent of Continental shares and was offering €69.37 a share in cash for the remainder. The German group holds 2.97 per cent of Continental's stock directly and has the right to buy 4.95 per cent through derivatives. It has also entered into transactions for about 28 per cent of the shares.

Schaeffler said it was not interested in owning a majority stake in Continental. Under German law, any shareholder controlling more than 31 per cent of a company must extend a formal offer to the remaining shareholders. - (Financial Times service)