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The Hamm family holds about 83% of the total outstanding shares of the company’s common stock. The proposal of $70 per share represents about 9% premium over Continental’s last closing price.
Continental shares rose 6.5% to $68.70 in premarket trading following the disclosure of the offer, which comes as oil prices hit triple digits after Russia’s invasion of Ukraine.
The conflict has disrupted supply chain at a time fuel demand is rising on resumption of global travel.
Continental said its board has not yet had the chance to review the offer and would form a special committee of directors unrelated to the Hamm family to consider the proposal.
If the independent committee rejects the proposal, the Hamm family will continue as long-term shareholders and would not push for any strategic options, according to the offer letter published by Continental.
