Schaeffler raised its offer price for shares in Vitesco Technologies on Monday, as a goodwill gesture, but Vitesco management said the new offer was "inadequate."
Germany's billionaire Schaeffler family holds all voting rights and 75 percent of shares in its namesake supplier of electric vehicle components. It also owns close to 50 percent of Vitesco, making the likelihood the merger will be agreed all but certain.
However, under pressure from some investors, who said the original offer of 91 euros per share was too low, it increased its offer price to 94 euros ($102.53) per share in Vitesco.
It said its decision underscored its confidence in the synergies made possible by combining the businesses.
Vitesco said in a statement the management and supervisory boards also considered the new price "inadequate from a financial point of view," but added it could provide an exit opportunity for risk-averse or short-term investors in the current market environment.
The companies have agreed to merge the two groups to create a more competitive supplier in the electric vehicle segment, as well as simplifying the Schaeffler family's empire, which includes stakes in Vitesco and Continental.
The offer period will expire on Dec. 15, and any transaction would be completed in the fourth quarter of 2024.
In this episode of the Ally All Ears podcast, host Emma Hancock interviews Kelly Olson, Senior Director of Operations for SmartAuction at Ally Financial, about the importance of quality control in online wholesale auctions. Olson discusses advancements in online auction platforms, highlighting the importance of detailed condition reports, AI technology for damage detection, and the evolving incorporation of electric vehicle information, all aimed at building trust and reliability for dealers purchasing pre-owned inventory.
Vitesco ranks No. 31 on Automotive News Europe's 2023 list of the world's top 100 suppliers, with annual parts sales to automakers of $9.68 billion in 2022.
