FAG Kugelfischer AG's battle against INA Holding's hostile takeover appears to now be involving the world's largest bearing manufacturers in a giant corporate chess game. At stake is a consolidation which will produce the world's second-largest bearing manufacturer, behind Sweden's SKF.

In an effort to fight off INA's hostile takeover bid, FAG has been promoting its partnering relationship with NTN, forged only a few months ago.

There have been doubts expressed, however, as to whether the FAG - NTN relationship would in any way survive if INA's takeover bid for FAG is ultimately successful. Sources have told eBearing that the FAG - NTN linkup would end almost immediately upon INA taking control of FAG.

Late last week, in an interview with Reuters, FAG CEO Uwe Loos said, "NTN has perhaps been talked about too much in the media." He went on to downplay the possibility of NTN as a, "white knight," saying building on the NTN relationship was only one of a series of options. Instead, Mr. Loos said, "One could also imagine an American partner."

Since there is only one American bearing manufacturer large enough to impact the transaction, most believe Mr. Loos could only be referring to the Timken Company.

Timken and FAG have made no public comments regarding any potential relationship. In fact, Mr. Loos has denied that FAG is in any type of formal talks with Timken.

Under German takeover law, FAG has another week before it must formally respond to INA's hostile takeover offer. However, Mr. Loos said that FAG will outline its defense strategy sometime in the next few days.