VW to extend Scania buyout offer to May 16 after positive response

Article by Christian A., on May 1, 2014

Volkswagen may soon realize its goal of fully controlling Swedish truck unit Scania. This comes as the carmaker disclosed that it already controlled 88.25 percent of Scania's equity and 95.81 percent of the voting rights, once the shares tendered for the SEK200 ($30.48) per share offer were included.

VW has set a 90-percent acceptance threshold for all shares in Scania and would extend the acceptance period until May 16 at 1500 GMT, after it initially ended April 25. VW said in a statement that it is confident that during the extended acceptance period, the necessary acceptance level would be met.

VW sees Scania's full integration into its fold as crucial for its bid establish a heavy-truck alliance between Scania, MAN SE and its own commercial-vehicles division -- allowing the Group to do business competitively against industry leaders Daimler AG and Volvo AB.

VW is seeking but struggling to replicate the success of its multi-brand management of passenger-car brands in its truck operations. While it has already invested billions of euros to take control of Scania and MAN, it gained limited financial gains as minority investors object to sharing technology that could hike earnings.

The buyout offer faced a big hurdle after Scania board members without direct links to VW remarked that the offer was too low and did not reflect Scania’s long-term potential of the truck unit.

VW has reiterated that it would not hike the offer price. Among those resisting the buyout offer are Swedish holding company Investor AB and the state AP4 fund. They, however, might change their decision after saying that they would review the offer documents anew. [source: Reuters]

Topics: vw

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries