• Sweden edition
 

VW raises stakes in Scania merger drive

Published: 07 Mar 2007 14:55 GMT+01:00
Updated: 07 Mar 2007 14:55 GMT+01:00

In the past few days, VW has sought to increase its influence in both companies, in an attempt to break a deadlock over MAN's long-running, hostile €10-billion-euro bid to buy Scania.

Scania has so far rejected all of MAN's approaches. But VW, which owns sizeable stakes in both companies, has been keen for the two sides to reach an amicable deal so that it can bring its own Brazilian truck activities into the venture.

With little sign of either MAN or Scania willing to back down, VW has taken matters into its own hands by raising its stake in both companies and seeking seats on their supervisory boards.

A few days ago, VW announced that it had raised its stake in MAN to 29.9 percent.

Then on Tuesday, VW's chief executive Martin Winterkorn was appointed head of Scania's supervisory board and it also emerged that the German auto giant was seeking three seats on MAN's 10-strong supervisory board as well.

In a statement released on Wednesday, VW announced that it had increased its voting stake in Scania to 35.31 percent from 34 percent previously, which meant the German car maker's overall shareholding in Scania rose to 20.03 percent from 18.7 percent.

"The step underlines the importance Volkswagen attaches to its participation in Scania," VW explained.

"The shareholdings in MAN and Scania aim to safeguard our strategic interest in the commercial vehicles business and are adequate for finding a friendly and mutually agreeable solution to realise the acknowledged high synergies."

VW said that it had received special dispensation from the Swedish stock market authorities to raise its stake in Scania to 49.99 percent without being obliged to launch a mandatory bid for the remaining shares.

A company spokeswoman declined to say whether VW actually intended to increase its stake in Scania to that level.

MAN has long been battling to to take over Scania, after launching a €10.2-billion bid last November with the aim of creating Europe's biggest truck maker.

Press reports suggested last week that VW sees MAN's chief executive Håkan Samuelsson as the main hurdle to a friendly merger and was therefore seeking to oust him.

To this end, VW is seeking to boost the number of its seats on MAN's supervisory board.

In a board reshuffle, the current VW representative, Audi chief executive Rupert Stadler, is standing for re-election.

But in addition, VW supervisory board chief Ferdinand Piech is to be nominated for election, as is the head of VW's heavy trucks division, Stephan Schaller.

Given the complexity of the matter, analysts do not expect a solution to be reached in the near term.

But the latest developments would put VW in a better position to achieve its goals, they said.

"We believe that the latest developments increase the probability that an amicable solution can be reached, and barring that, an unfriendly solution," said Merck Finck analyst, Robert Heberger.

"Volkswagen is moving its pawns in the current chess-game ahead of the resumption of talks.

"Tactically, it's a good move. It shows its determination to accelerate the process. And by raising its stakes in both MAN and Scania, it will also gain a bigger stake in the merged entity," said HVB analyst Nathan Kohlhoff.

In midday trading on the Frankfurt stock exchange, MAN shares were showing a gain of €2.98 or 3.76 percent at €82.25. VW shares were up €2.26 or 2.4 percent at €96.31.

Don't miss...X
Left Right
Today's headlines
Late summer sun set to hit Sweden

Late summer sun set to hit Sweden

Forecasters have predicted sunshine across Sweden this week, with a warm front moving in from Russia and temperatures of up to 25C. READ  

International police hunt
Swedish killer arrested after European hunt
Photo: Police

Swedish killer arrested after European hunt

UPDATED: Police arrested a man on Tuesday afternoon after he went missing from a psychiatric ward in western Sweden at the weekend. The man had been convicted of murdering a five-year-old schoolgirl in 2003. READ  

Music
The five best Swedish songs of the month
Swedish singer Tove Lo. Photot: TT

The five best Swedish songs of the month

The summer may be (almost) over but the music will keep on playing here at The Local. Our resident music guru Paul Connolly will be selecting his top new Swedish tracks for us in a new monthly feature. READ  

Hedgehog pet craze sweeps Sweden

Hedgehog pet craze sweeps Sweden

African pygmy hedgehogs are being bought by growing numbers of Swedes, as a trend for keeping exotic pets sweeps the country, the Department for Animal Welfare and Health tells The Local. READ  

Poisonous mushrooms cause stir in Sweden
The mushroom in this picture is not the same as the one from the story. Photo: Shutterstock

Poisonous mushrooms cause stir in Sweden

A person selling freshly-picked mushrooms in Gothenburg has come under fire after it turned out the delicacies were not only poisonous but also hallucinogenic. READ  

Pirate Bay founder case starts in confusion

Pirate Bay founder case starts in confusion

The largest hacking case in Danish history began in confusion on Tuesday, after lawyers representing Swedish Pirate Bay co-founder Gottfrid Svartholm Warg accused the prosecution of "unreasonable" tactics. READ  

Swedfund joins H&M in Ethiopia expansion

Swedfund joins H&M in Ethiopia expansion

As H&M expands into Ethiopia, Sweden's state venture capital unit Swedfund has announced that it will back the clothing giant, in a move hoped to create more jobs for local women. READ  

Elections 2014
Social Democrats reveal election manifesto
Photo: TT

Social Democrats reveal election manifesto

UPDATED: Sweden's main opposition party the Social Democrats has revealed its election manifesto at a press conference at a high school in Stockholm, with a key focus on education and welfare benefits. READ  

Teen run over by train after 'shoplifting' chase

Teen run over by train after 'shoplifting' chase

A teenage boy is in a critical condition after he was hit by a passing metro train in Stockholm. The accident ground rail traffic to a halt, and has police suspecting attempted murder. READ  

Swimrun
Record win at Sweden's tough island race
Photo: Jakob Edholm/ÖTILLÖ14

Record win at Sweden's tough island race

Two Swedes crushed last year's course record at the Swimrun world championship in Stockholm's archipelago on Monday. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
National
Huge clear up underway after Skåne floods
Politics
Sweden's Alliance reveals full manifesto
Tech
Sweden's highest peak to lose title next year
Blog updates

02 September

America night (Blogweiser) »

" There was an event this weekend for the ‘Americans in Sweden’ Facebook group. I’m a member, and I brought my girls to the evening. The gathering was at a Boston-themed sportsbar in a mall. There were loads of screens, a bowling alley, a game room and a jumbotron. It was as good a place as any to..." READ »

 

25 August

Hit och dit, här och där (The Swedish Teacher) »

" Hej igen! A common challenge for Swedish language students are the location adverbs hit/här, dit/där, hem/hemma etc. Some of the location adverbs come in two versions. We should use one type of location adverb when we use a verb describes where we are, and we should use the other type of location adverb when we the verb..." READ »

 
 
 
Politics
How immigration became a key election issue
Society
Brit's life in Sweden becomes BBC radio show
Gallery
People-watching August 27
Gallery
Top ten false friends in Swedish
National
Roma advocate scoops Wallenberg prize
Society
Meet the man who made a Swedish store recall its high heels for kids
Business & Money
'How I came to run my own business in Sweden'
Politics
Expert explains why Sweden's election oozes uncertainty
National
City plays Schindler's List theme at Nazi rally
Society
For Stockholm Fashion Week, here's the A-Z of Swedish fashion
National
'Amnesiac' man avoids deportation for ten years
Gallery
Princess Estelle through the years
Business & Money
Swedish city all set for six-hour workday trial
Business & Money
Five golden rules for the Swedish job hunt
Sponsored Article
Graduates: Insure your income in Sweden with AEA
Gallery
People-watching August 22-24
National
Armed royal guards caught (very) drunk on the job
National
Sweden orders textbook on Roma discrimination
Gallery
Violent anti-Nazi demonstrations in Malmö
Society
A closer look at Sweden's five official minority languages
Sponsored Article
Find out what gives this Swedish school executive appeal
Sponsored Article
Introducing...Your finances in Stockholm
Sponsored Article
Introducing...Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

757
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se