A 9.6 billion euro cash-and-share takeover offer from Germany’s MAN for Swedish lorry-maker Scania has been rejected. Scania said its board unanimously turned down the offer at a meeting on Sunday. MAN’s Chief Executive, Hakan Samuelsson, who is Swedish and a former Scania manager wants to combine the companies to challenge DaimlerChrysler and Volvo-Renault.
He said: “Here’s our logic: we put together two strong companies and we create a very strong truck maker. We will become number one in Europe and number three in the world. By pooling our financial and technological resources, we create a real platform for future growth – internationally and globally.”
MAN is currently the Europe’s third largest truck maker and Scania is fourth; combined they would produce 28% of the large trucks sold in Europe, putting them above Volvo/Renault, with a quarter, and DaimlerChrysler’s Mercedes, with a fifth. The other big player is DAF with 15%.
Some industry analysts say the rejection appears to be to force MAN to increase the value of its bid. And Investor AB, which holds 10.8% of Scania’s capital and controls 29% of the votes said the offer “does not reflect (its) fair value and potential.” Carmaker Volkwagen, which holds 34% of the voting shares in Scania, also rejected the offer and said it was not in the interest of its industrial strategy. MAN says that French carmaker Renault is ready to sell its 5% stake in Scania with no strings attached.
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