Solution for Continental might drag on - sources

HANOVER, Germany, July 10 (Reuters) - Debt-laden German car parts makers Continental (CONG.DE) and Schaeffler might need months to fix a botched takeover and come up with a sustainable business strategy, sources familiar with the matter told Reuters.

"There is a chance that the companies and their banks will decide on key points by the end of this year," one person close to the negotiations said, "but it is rather unlikely that this will happen this month."

Schaeffler bought 90 percent of Continental last year at 75 euros per share only to have the deal backfire when global automotive markets collapsed. The companies have not yet merged, remaining as two separate groups.

On Friday Continental traded at 19.40 euros.

Now the partners are working on ways to combine the two businesses and shore up their finances.

A Schaeffler spokesman said on Friday: "We are still working on a quick combination of the two companies."

A Continental spokeswoman reiterated that the supervisory board was going to discuss options on July 30.

Sources close to the negotiations told Reuters, however, that creditor banks saw no need to hurry because Schaeffler has recently secured a bridge loan of 1 billion euros.

"They won't run out of money next month," a person close to the Schaeffler banks said. "So there will be calm seas for the months ahead -- very calm."