Continental AG:Continental acquires Siemens VDO for €11.4 billion
Continental AG / Miscellaneous/MiscellaneousRelease of an Ad hoc announcement according to § 15 WpHG, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.----------------------------------------------------------------------Continental acquires Siemens VDO for € 11.4 billionContinental acquires the automotive products business concentrated in theSiemens VDO Automotive AG for €11.4 billion from Siemens AG, Berlin/Munich.The purchase price includes future tax benefits for Continental which havebeen determined at approximately one billion Euro and which do not resultin any loss of revenue for the tax authorities. The supervisory boards ofSiemens AG and of Continental AG approved the transaction in Munich andHanover respectively on Wednesday. Execution of the acquisition iscontingent on the approval of the appropriate antitrust authorities.On the basis of 2006, Continental and Siemens VDO realize aggregate annualsales of around 25 billion euros with a workforce of close to 140,000.Thus, Continental advances to a position among the top five worldwide inthe automotive supply industry.Continental anticipates a net synergy potential in the order of at least€170 million a year as of 2010. Assuming no delays in antitrust clearance,closing of the transaction should occur towards the end of the fourthquarter. Integration will be concluded by the end of 2009. Continental has secured a financing package that is targeted at meeting itsgoal of attaining a continued solid credit rating of BBB or Baa2.Continental is currently rated BBB+ and Baa1. Neither the sale of theContiTech-division nor of any of the tire divisions is planned.DGAP 25.07.2007 ---------------------------------------------------------------------- Language: EnglishIssuer: Continental AG Vahrenwalder Straße 9 30165 Hannover DeutschlandPhone: +49 (0)511 938-1068Fax: +49 (0)511 938-1080E-mail: ir@conti.deInternet: www.conti.deISIN: DE0005439004WKN: 543900Indices: DAXListed: Amtlicher Markt in Berlin, Wien, Frankfurt (Prime Standard), Hannover, Hamburg, Luxembourg, SWX, Stuttgart; Freiverkehr in München, Düsseldorf; Terminbörse EUREX End of News DGAP News-Service ---------------------------------------------------------------------------