Scania committe rejects VW bid

Comment on this story
VWLogo REUTERS The Volkswagen logo.

Stockholm - An independent committee of the board of Swedish truck-maker Scania on Tuesday rejected a 6.7-billion-euro (9.2-billion-dollar) buyout offer from German carmaker Volkswagen, citing it was too low.

“Our assessment is that the current offer does not reflect the long-term value of the company and a fair share of the synergies,” said Asa Thunman, chairwoman of the independent committee.

The five-member committee - with no ties to VW which Scania's other seven board members have - was formed after VW presented its bid last month.

The Scania share price dipped 3 per cent to 189.70 kronor (29.7 dollars) in early trading.

VW said its offer of 200 kronor per share was a premium of more than 50 per cent on the average share price in recent months.

The acceptance period for the offer ends April 25.

The buyout aimed at creating synergies and savings with German truck-maker MAN, which VW owns.

VW said it aimed at securing control of more than 90 per cent of Scania's total shares, through a so-called squeeze out and a delisting from the stock exchange.

VW currently has 89.2 of the voting rights and 62.6 per cent of Scania's capital. - Sapa-dpa

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines