Continental AG of Germany said that its shareholder Schaeffler has sent a notice of termination for an investment agreement in force since August 2008. The investment agreement protected the tire manufacturer from being acquired, as Schaeffler currently owns 49.9% of Continental.
According to Continental AG CEO Elmar Degenhart, through a statement, "Notice of termination of the investment agreement is understandable from the vantage point of Schaeffler, our anchor shareholder. We are confident that the two companies would continue their very good and goal-oriented cooperation on into the future."
The said investment agreement was forged under the leadership of then German Chancellor Dr. Gerhard Schroder. The main terms of the agreement include the cooperative relationship between the two firms in view of the position that Schaeffler is a major single shareholder in Continental.
The said open ended Agreement cannot be terminated before the spring of 2014, but despite such provision, the notice of termination was accepted by the Herzogernaurach based company.
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