26 January, 2009
Calling for an immediate “return to social and economic reason,” the deputy chairman of Continental AG’s supervisory board has called on the bitter stakeholder dispute between the tyre and auto-components company and Schaeffler KG – its new controlling shareholder – to cease.
Werner Bischoff, also a senior leader of ICEM German affiliate IGBCE, said the bickering has severely impacted the reputations of both companies, with erosion of staff confidence the result. Bischoff said the persisting public conflict was harming future perspectives for 100,000 Conti workers.
IGBCE's Werner Bischoff
The dispute turned ugly recently when privately-held Schaeffler boldly asserted that Continental’s Chairman Hubertus van Grünberg had “systematically sabotaged all mutual solutions” since agreement was reached with the bearings maker to acquire 49% of Conti stock last summer. That agreement called on Schaeffler, as controlling partner, not to exert undue influence over Conti, or to disrupt Continental’s worker participation platforms.
But in Schaeffler’s public anger last week, the company threatened to dissolve the 10-member supervisory board of Continental and to vacate the negotiated settlement that ended the hostile takeover battle last summer.
Bischoff and the IGBCE contend that the investment agreement reached in August 2008 serves as sound footing for the company, and that Schaeffler should take up its designated role on the supervisory committee. “The overall economic situation demands reasonable and trusting cooperation,” stated the IGBCE, citing risk of failure to the company if the volatile public dispute persists.
The IGBCE was a major pillar inside last summer’s €75-a-share, €12.1 billion investment deal, winning pledges of no asset sales, no job losses, and no structural changes in Conti’s operations by Schaeffler acquiring a 49% interest.