New chief for Germany tyre firm

Continental will keep its stock market listing under the deal

Tyre maker Continental has named Karl Thomas Neumann, 47, as its new chief executive following the resignation of Manfred Wennemer.

Mr Wennemer stood down in the wake of Continental agreeing to sell almost half of the firm to its smaller German rival, Schaeffler.

He had vehemently opposed the deal, and was angry at Schaeffler secretly building a 36% stake in Continental.

Schaeffler will now take a 49.99% stake - valuing Continental at 12.1bn euros.

Continental has insisted that as part of the deal, it will not be broken up and that it will keep its stock market listing.

As part of the executive shake-up Alan Hippe, 41, was also named in the newly created position of deputy chief executive.

Mr Wennemer, who had headed the company since 2001, had "asked... to be relieved of his responsibilities," Continental said.

The company employs around 150,000 people in 36 countries.

Privately-owned Schaeffler makes parts for car and plane systems and specialises in the manufacture of ball bearings - which it says are used in projects from the London Eye to NASA space shuttles.

Observers say that the coming together of the two firms will create the world's third-biggest car-industry supplier, with sales of about $50bn.