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Continental weighs options for combustion engine business: source

Reuters  |  HAMBURG 

(Reuters) - AG is still looking at its corporate structure as part of a review launched more than a year ago, a source close to the matter said on Tuesday after a media report on a possible breakup of the pushed its to a record high.

A possible separation of Continental's business related to combustion engines also remains on the agenda as the industry shifts its focus towards electric vehicles, the person said.

Investment banks have presented various ideas over the last couple of months, but no specific blueprint has emerged so far, the person said.

is investing in electric drives and strengthening its expertise in as customers such as Volkswagen, and sharpen their focus on

The Hanover-based group said a year ago it was reviewing its strategy for its Powertrain division after earnings at the business, whose products include transmission control units and fuel pumps, failed to meet expectations.

But it has also pledged to keep developing new products and systems for combustion-based power trains until at least 2025 when it expects demand for electric vehicles to start taking off on the back of continuing reductions in battery prices.

earlier reported was in exploratory talks with advisers on a major overhaul or even a breakup of its business, citing people familiar with the matter.

It said could create a holding company for its divisions and then list of the more profitable units, such as the tyre business, or combine some operations with rivals.

The review remains at an early stage, with no decision made yet, it cited the sources as saying.

Continental, which is due to publish preliminary financial results later on Tuesday, declined to comment.

in the group, which is 46 percent-controlled by the family that owns Schaeffler, jumped as much as 7.9 percent to a record high of 257.40 euros following the report.

They were up 5.3 percent at 251.20 euros by 1442 GMT.

Rivals such as and have spun off divisions to simplify their corporate structures and react to the changes in technology.

Carmaker has said it may split parts of its business into separate legal entities, which may allow for a partial listing to raise funds to invest in new services such as and

(Reporting by Jan Schwartz; Writing by and Maria Sheahan; Editing by and Keith Weir)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 09 2018. 20:44 IST