Tognum rejected Daimler and Rolls-Royce’ joint 24 euros-per-share offer

Article by Christian Andrei, on April 8, 2011

A group of shareholders of Tognum AG stock has rejected a 24 euros-per-share joint offer from the German engine manufacturer’s prospective buyers, Rolls-Royce Group Plc and Daimler AG, an insider of the situation disclosed.

The shareholders, who hold around 30 percent shares of the German engine manufacturer Tognum, said that the bid offered by Daimler and Rolls-Royce to buy Tognum was too low.

Among the investors who sent the manufacturer a written objection to the bid were Delta Lloyd Asset Management, ING Groep NV and First Eagle Investment Management.

Other shareholders expressed their oppositions orally, according to the person who requested anonymity because the communication is confidential. Based on Bloomberg’s compiled data, the combined share of First Eagle and ING will amount to at least 12%, second only to Daimler’s share of 28.4 percent.

Spokesperson for Daimler, Florian Martens said through a telephone interview that Daimler remains firm to the 3.2 billion-euro ($4.6 billion) bid.

On April 6, 2011, Rolls-Royce and Daimler began their public offer for Tognum, even if the stock has gone above the bid price since March 9, 2011, seeking a share of the engine manufacturer’s stock of at least 50 percent. Tognum had not agreed on a price, and the offer of the two companies is set to expire by May 18, 2011.

In addition, Daimler has pledged its stake. Rolls-Royce, a London-based aircraft engines maker, and Daimler, the manufacturer of Mercedes-Benz vehicles, will stay firm with their bid.

As of 10:13 a.m. today in Frankfurt, Germany, Tognum traded at 25.78 euros, rising as much as 0.1 percent, and was valued at 3.38 billion euros. The offer is higher by 30 percent compared to the closing price of Tognum in March 4, the last trading day before Daimler and Rolls-Royce conveyed their interest.

Topics: rolls-royce

If you liked the article, share on:


Login or Create new account to add a comment!


We’re all excited as the year comes to an end especially as there are several things we’ve highly anticipated. Like always, the car industry has something new to offer; that’s...
by - October 28, 2016
Fuel economy is now an everyday term we hear and read in the automotive world. Just recently, some car manufacturers got into serious trouble for claiming false statements with regard...
by - October 28, 2016
More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016