Uwe Loos and Juergen Geissinger, heads of FAG Kugelfischer and INA Holding, reportedly met over the weekend for the first time since INA's hostile takeover bid for FAG was revealed on September 10. German business media are reporting the two met to work out a possible end to FAG's fight to remain independent.

FAG management has been very aggressively fighting the INA takeover bid from the time it was announced. Their central argument has been that INA's current offer of € 11 per share is far too low and does not represent the true value of the company.

The company's efforts to hold off INA's bid, however, have so far been unsuccessful. Last week, an effort to assemble "white knight" funding for an alternative bid by NTN and an undisclosed financial backer fell through when the London-based investor pulled out. A FAG spokesman said, "From today's point of view, it is questionable whether such a solution can be achieved."

According to sources within the two companies, FAG management is now willing to publicly support an INA offer if it is raised from € 11 to € 12.5 per share. This would value FAG at € 760 million.