German lorry maker MAN has officially launched its 10.3 billion euro takeover offer for Scania: that makes it a hostile bid, as Scania and its second biggest shareholder, Investor AB, have rejected it saying it undervalues the company. MAN set a deadline of 11th December for investors to tender their stock saying it will go ahead only if holders of 90% of the shares accept. So far it has a commitment for 14.5% of them.
MAN wants to combine with Scania to create Europe’s largest truck manufacturer, which would overtake DaimlerChrysler and Volvo. It said it expects the European Commission to rule on the competition aspects of the proposed takeover on the 6th December.
German carmaker Volkswagen – another major shareholder of Scania – would like a three-way combination between MAN, Scania and VW’s Brazilian heavy goods vehicle unit. VW has called on the two firms to reach an amicable agreement by the end of this week, but has not said what it will do if they do not agree to a deal.