FRANKFURT, Germany (AP) -- Tire maker and auto supplier Continental AG said Monday that it has discussed a "possible engagement" by family owned German company Schaeffler KG, following a report that the smaller firm planned to take it over.
Shares in Continental soared following the report in the daily Frankfurter Allgemeine Zeitung, which cited no sources. The newspaper reported that the companies have been in talks and that Schaeffler, an automotive components maker, has secured the necessary financing.
In a statement, Continental said that "one brief conversation about a possible engagement by Schaeffler Group in Continental AG took place at the end of last week."
"No further conversations took place," it added. "As soon as Schaeffler Group has substantiated its plans, the management board of Continental AG will evaluate these and communicate its views in due course."
Continental shares were up more than 24 percent at 67.22 euros ($107.17) in midday Frankfurt trading -- far outpacing a 1.2 percent overall gain by the DAX index of blue-chip stocks.