** Shares in Continental CONG.DE seen up 2.3% in pre-market indications after the German car parts supplier's decision to sell ContiTech unit to Lone Star Funds for $4.6 billion

** The company expects to distribute around €2.5 billion ($2.86 billion) to shareholders either through a special dividend or through a combination of share buybacks and a special dividend

** J.P. Morgan sees the sale, which is at the top end of the €3.5-4 billion expectations range, as a positive step for investors

** "It further focuses the group's attention on the tire division allowing the stock's multiple to further re-rate," the broker says

($1 = 0.8748 euros)