FRANKFURT, GERMANY - The German engineering group Schaeffler said on Friday it expected to wrap up its takeover of much bigger rival Continental within a month after getting final approval from the European Commission.

EU authorities have 25 working days to either give their green light or launch a deeper enquiry, but group Schaeffler said it was confident of getting the go-ahead within the first investigation period.

Shares in Continental, an auto parts maker, leapt higher on the news, gaining 32.40% to 38.86 euros(74.9 sing) in midday trades on the Frankfurt stock exchange, while the DAX index of leading shares had risen by 3.95% overall.

Market rumours said luxury sports car maker Porsche could help Schaeffler in its takeover bid.

In the past weeks, Schaeffler was rumoured to be having trouble getting financing for the deal.

Schaeffler offered 75 euros per share for Continental in August, but pledged not to take a majority holding before 2012.

Since then, the auto sector's perspective has worsened owing to slumping sales in major markets.

"We will implement our strategy according to plan and conclude the takeover after approval from the EU Commission," Schaeffler chief executive Juergen Geissinger was quoted in a statement as saying.

"We will be able to offer the automobile industry solutions for any market and application - from individual components through to systems solutions."

Baader Bank broker Robert Halver told AFP that "Porsche could play the role of white knight in this acquisition."

He said that after taking control of the biggest European car maker Volkswagen, Porsche could be aiming for a presence along the entire production chain.

"These are market rumours, there is no truth in it," a Porsche spokesman told AFP.

Schaeffler has received more than 90% of the shares in Continental, and is thus looking for investors able to purchase the surplus.

Schaeffer group owner Maria-Elisabeth Schaeffler told an industry conference in Berlin last month that she did not rule out a long-term investor taking a major stake in Continental as well.