Continental favourss cash payments for potential Siemens, Goodyear unit buyouts

FRANKFURT (AFX) - Continental AG favours a cash transaction in the potential takeover of Siemens AG's VDO unit or Goodyear Tire and Rubber Co's engineered products division, chief financial officer Allan Hippe told Automobilwoche Online.

'We have too much cash,' he said.

Hippe said the time was right for acquisitions as the industry is in consolidation mode, the online magazine added.

Cheif executive Manfred Wennemer said the company would also be pleased with a minority stake in VDO, the report added.

The automotive supplier previously said it has a war chest of around 4 bln eur and can afford acquisitions.

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