In the Driver's Seat
March 3, 2008
Volkswagen said in a statement on Monday, March 3, it would increase its voting rights to 68.60 in Scania by acquiring an additional 30.62 percent from two other investors. Its direct stake will rise from 20.89 percent to 37.73 percent.
The company said it would pay Swedish investment group Investor and the Wallenberg foundation 200 Swedish crowns (21.40 euros, $32.40) per share. The deal amounts to around 2.9 billion euros.
"The share acquisition underlines the importance that we attribute to the stake in Scania," said VW chairman Martin Winterkorn in the statement. "Scania is a strong premium brand which has a prosperous future."
Three-way tie-up expected
Volkswagen favors a three-way merger with Scania and German heavy truck maker MAN, of which it is the greatest single shareholder, and its announcement was welcomed by the conglomerate.
"We see better opportunities for a cooperation with Scania and Volkswagen Commercial Vehicles," a MAN spokesman told the DPA news agency on Monday.
The news also caused a jump in MAN shares, increasing by around 5 percent, to 91.20 euros in Frankfurt.
"Wallenberg's sale of his Scania shares clears the way for a tie-up between MAN, Scania and VW's business in Brazil with heavy trucks," analysts from Cheuvreux said.
MAN holds a 17-percent stake in Scania and failed to carry out an unfriendly takeover of its competitor a year ago.