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Article: Germany: Schaeffler May Need to Borrow $35 Billion to Buy Continental.
- Article from:
- TendersInfo
- Article date:
- July 29, 2008
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Byline: pinto03
Schaeffler Group, the German family owned ball-bearing maker, may need to borrow as much as 22 billion euros ($34.5 billion) to buy Continental AG, almost twice the tiremaker's stock market value.
Schaeffler will either have to refinance 12 billion euros(USD18.9bn) in loans that Continental obtained last year, or pay a penalty to lenders and assume the debt, according to Christophe Boulanger, a debt analyst at Calyon in London. The Herzogenaurach, Germany-based company also needs cash to buy Continental's equity, now valued at 11.7 billion euros(USD18.4bn).
The debt, which would increase 10-fold from the current 2 billion ...