Rumour of the day: Continental tread carefully

GERMAN automotive supplier Continental has hired an investment bank to help find potential partners for its tyre and rubber business.

"It is less a question of selling it than of finding possible partnerships," a source said yesterday.

Previous reports had claimed that Continental was looking into a possible sale of the business.

Continental, which is the subject of a takeover offer by family-owned bearings maker Schaeffler Group, declined to comment.

Continental has opened the door to a strategic move by reorganising into two main divisions – an automotive business and one for tyres and other rubber parts.

But Schaeffler has reiterated they have no interest in splitting Continental into two divisions.