Continental, a German tyre maker, has trumped a private equity bid for VDO by more than a third with an €11bn ($14.8bn) offer, reigniting the possibility of a sale of the auto parts manufacturer and casting doubt on its plans for a stock market listing.

Continental and a trio of private equity firms expressed interest in buying VDO at the beginning of the year, after parent Siemens revealed plans to float the company on the Frankfurt stock exchange.