January 20, 2018 / 12:01 PM / a year ago

Schaeffler CEO says splitting company would be unwise -paper

FRANKFURT, Jan 20 (Reuters) - German car parts maker Schaeffler sees no merit in splitting the company, contrasting with peers such as Continental, Delphi or Autoliv, which have spun off units or are considering doing so.

"In my eyes, it would be unwise if the units (of Schaeffler) would go their separate ways," Chief Executive Klaus Rosenfeld was quoted by German weekly Automobilwoche as saying.

The bearings maker is the largest shareholder of tyre and auto parts group Continental, which said earlier this month that it was in talks about a possible structural overhaul and pledged to flesh out its plans within six months.

Meanwhile in another story published in Automobilwoche, Continental CEO Elmar Degenhart said the company needed to analyse which set-up would enable it to beat overall market growth from 2025.

"We have to admit that our portfolio is very diversified," he was quoted as saying. "Continental has to become ever more flexible, agile. And it must not lose speed."

Sources told Reuters this week that Continental had hired JP Morgan to work on strategic options for the company, including a separation of its current businesses.

Degenhart said, however, seeking a higher valuation for a unit did not mean selling it outright, according to the magazine article.

Reporting by Arno Schuetze; editing by Clelia Oziel

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