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.