CEO backs any merger of Continental AG

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In an interview with German news agency dpa, he said he views as'altogether positive' any merger between the two companies, addingContinental is strong in the electronics sector while Schaeffler isa major player in the mechanism segment.
Schaeffler announced it would offer 69.37 euros cash for all ofContinental shares. The latter rejected the offer, saying the pricedoes not reflect its true value.
Winterkorn told dpa Volkswagen is holding on to its full year 2008forecasts that earnings, revenues and unit sales would be higherthan in 2007.
Commenting on the current high steel prices, he said the wholeissue is not critical at this stage for VW because it has existinglong-term contracts but that it could be a major cost factor in thenext coming years once contracts are renegotiated.
Winterkorn said there is a boom in the business of big dieselengines, such as those used for ships, and he views this sector asa big growth potential. In principle, VW acquisitions in thissegment is a possibility, he added.
He also said there is no need for VW to act on MAN AG and Scania ABeven though VW would close its deal to increase its voting rightsin Scania to 68 percent by July 22.
VW holds nearly 30 percent stake in MAN, which in turn owns some 17pct voting rights in its Swedish truck rival.
Analysts have been speculating VW might eventually have to bundleits own Brazil-based truck operations with those of MAN and Scania.