Bachelor Thesis from the year 2010 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, Vienna University of Economics and Business (Institute for International Marketing Management), language: English, abstract: Case Summary The German based Schaeffler Group is privately owned by Maria Elisabeth Schaeffler and her Son Georg Schaeffler. In 2007 the company was the world's second-largest manufacturer of ball bearings. In order to become the world leader in the automotive components industry, on 15 July 2008, Schaeffler launched a bid to acquire publicly-held Continental AG, the world's six-largest automotive components supplier. After fiercely opposing the bid, Continental ultimately accepted Schaeffler's offer, but compelled Schaeffler to sign an investment agreement which was largely in its favor. Schaeffler's bid was a bold move, considering the fact that it was nearly three times smaller than Continental. Also, financing the acquisition and taking over Continental's businesses during times of severe global financial and economic crises was a big challenge. Key Issues The student's task is to analyze the case from the point of view of Schaeffler's Owner Maria Elisabeth and Georg Schaeffler on January 6, 2010, after Continental's share issue of 31 million new stocks. The reader will learn why it is useful for companies to buy others and with which strategy Schaeffler used for its takeover. Furthermore an analysis of the share price will show the student how mergers influence the company's value on the stock exchange.
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