ZF Ponders Next Steps as Haldex Bid Stalls

ZF Friedrichshafen AG says it is exploring “all options” after its bid to buy Swedish brake system supplier Haldex SA appears to have failed.

Last week ZF declared it would abandon its offer to pay 120 kronor ($18) per share for Haldex stock if it was unable to boost its existing 21.4% stake in the company to at least 50% by Oct. 3. The official results of the bid will be announced tomorrow.

Reuters says Swedish law prevents ZF from raising its bid again for 12 months. In September ZF CEO Stefan Sommer indicated a failed bid might prompt his company to either sell its stake to other shareholders or attempt to purchase a portion of the Swedish company.

ZF’s offer is 5 kronor per share below a rival bid from German brake company Knorr-Bremse AG. Haldex’s board had recommended shareholders accept the lower bid because ZF already has cleared regulatory hurdles. Some analysts say Knorr-Bremse’s offer could raise anti-competition concerns that eventually block the sale.