Linklaters and Allen & Overy (A&O) have taken lead roles on the €12bn (£10.3bn) debt restructuring of ball-bearing manufacturer Schaeffler, in a move which could lead to a merger with auto-parts manufacturer Continental.

Linklaters advised a consortium of five lending banks comprising UBS, Royal Bank of Scotland, UniCredit, Commerzbank and LBBW, with London and Frankfurt-based banking partners Stephen Lucas and Marc Trinkaus leading the team.