Carlyle eyes German rubber deal

The Carlyle Group has entered exclusive talks with Continental, the German maker of tyres and car parts, to buy the company's rubber products arm.

Conti-Tech could fetch anything up to E1.2bn if sold to the private equity group. According to the Financial Times, Carlyle has been granted exclusivity after outpacing a number of rival bidders including CVC Capital Partners, Industri Capital and Trelleborg, the Swedish industrial comglomerate.

Doing business with Continental would give Carlyle another high-profile acquisition in Germany's automotive sector. The firm already owns Honsel, the manufacturerer of light-metal high-pressure die castings for the automobile industry, and Beru AG.

Selling Conti-Tech is part of a strategic move away from tyres for Continental. Stephan Kessler, the group's CEO, is aiming for the disposal to be wrapped early in 2002.