Continental considers hiving off auto business: Report

Continental is mulling spinning off and taking its auto unit public and an executive board decision is slated in the fourth quarter, Reuters reported. The auto part and tyre firm's head Nikolai Setzer informed investors on a call that this was on the back of financial market volatility and industry changes.

The company further noted that a spin off could be given for approval at a shareholder meeting, coming April, and the unit could be taken public by next year end, Reuters reported. When this comes into effect, Continental could be halved, the newswire noted. 

Aforementioned plans of culling out the user experience unit would be shelved for the moment, Reuters said. 

Wolfgang Reitzle, the company's supervisory board chairman noted in a statement that Continental would be "able to harness its full potential for creating value." He added that in addition, investors would be able to invest in a firm especially focused on automotive electronics.

Shareholders will get shares in the new firm in proportion to their holding in Continental, in the spin off, as was observed with Vitesco Technologies.

Phillip von Hirschheydt, the present head of the division will be at the helm of the unit that will be spinned off, Setzer told analysts during a call. The company further noted that the contract manufacturing unit will also be included in this transaction.