• Sweden's news in English
 
app_header_v3

Scania board rejects Volkswagen takeover bid

The Local · 18 Mar 2014, 10:15

Published: 18 Mar 2014 10:15 GMT+01:00

In a statement issued on Tuesday the independent committee of the Scania board of directors made its position clear. Volkswagen already owns 63 percent of share capital in the Swedish company and had offered 200 kronor ($31) per share for the remaining stock. 

"Scania is a world-leader in its industry and the committee has strong faith in the business plan set out by the company. 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 committee chair Åsa Thunman. 

The proposed takeover by Volkswagen has generated considerable interest since it was first mooted in February. After the initial offer two of Scania's owners, Skandia and AP4, said they were unwilling to sell their stock.

Scania's board has been dissecting the offer ever since, which has also been the subject of a probe by the Economic Crime Authority. The agency launched the investigation into suspected insider trading in the wake of the takeover bid.

Volkswagen first bought into Scania in 2000 and wanted to assume full control of the Swedish company. It estimated that it would make annual savings of €650 million through synergies as VW already owns German truck and bus outfit MAN.

However, any full takeover has been put on hold following the decision by the independent Scania board which believes its members' shares are more valuable.

"Based on the long-term prospects of Scania, its growth outlook, technological excellence and the synergy potential, the committee believes the offer does not reflect the long-term fundamental value of Scania and a fair share of the expected synergy potential and recommends to Scania’s shareholders not to tender their shares," the company said.

In a separate business update Scania reported that the company is in rude health with truck orders at a comparable level compared to 2013.

Story continues below…

"Scania expects operating margins to improve over the coming years," the company concluded.

Scania, which has been in operation since 1891, presently employs 38,600 people in more than 100 countries. Its headquarters are in Södertälje, Stockholm county, where almost 10,000 of the workforce are based.  

The Local/pr

The Local (news@thelocal.se)

Your comments about this article

Today's headlines
Swedish economy beating European giants in 2016
New numbers from Statistics Sweden paint a positive picture. Photo: Micke Larsson/TT

Sweden's economy is leaving the likes of Germany and Great Britain in its wake, figures suggest.

Video
Meet Dynamite Erik, a Swede who blows things up for fun
Who doesn't want to blow up a computer? Photo: Erik Johansson

The Local talks to a Swedish farmer who has turned his hobby of blowing things up into a YouTube sensation.

Swedish police to trial use of taser guns
A file photo of a Swedish police officer. Photo: Johan Nilsson/TT

The weapons are designed to incapacitate assailants through an electrical current.

Swedish woman denied job because of her head scarf
Gothenburg resident Ruya El Hattawi, who says she was denied a job because of her veil. Photo: Private

Delight over tying down a summer job soon gave way to shock when the offer was withdrawn.

Fans threatening boycott of Johnny Depp's Stockholm gig
Johnny Depp and the Hollywood Vampires performing at the 2016 Grammy Awards. Photo: Matt Sayles/Invision/AP

But others were queuing outside on Monday morning.

Good news: The Swedish summer has returned
It could be time for that first swim of the year in Sweden. Photo: Johan Nilsson/TT

Time to put away those waterproofs and bring out the bathing suits once more.

Zlatan's sore calf forces him to sit out Sweden's friendly
Zlatan Ibrahimovic at the Sweden team's training camp. Photo: Erik Nylander/TT

So does that mean Slovenia will beat Sweden on Monday?

'Sweden would not be able to defend Gotland'
File photo of a military exercise. Photo: Stefan Jerrevång/TT

Sweden would not be able to make a stand if it came to an invasion of the Baltic Sea island by foreign forces, one expert has said.

My Swedish Career
'Sweden is the ideal place for my business'
Emilie Terstegge. Photo: Sandra Jolly Photography.

Why Sweden's fitness craze and generous family benefits helped this Dutch entrepreneur launch her startup for mums.

Police shoot knife man in central Stockholm
Police technicians spent the rest of Saturday night combing the square for clues. Photo: TT

A knife-wielding man was shot by police officers in Stockholm’s Sergel Square after he attacked officers.

Sponsored Article
'Only soft power can defeat radicalism'
Gallery
People-watching: May 27th-29th
Sponsored Article
'Sweden gives artists the space to follow their dreams'
National
First migrants make it from Denmark to Sweden on foot
Gallery
The best, cutest and funniest snaps from Prince Oscar's christening
Blog updates

27 May

Editor’s blog, May 27th (The Local Sweden) »

"Hej readers, Would you spend a day doing manual labour in high heels? That’s what Swedish…" READ »

 

17 May

What about “att”? (The Swedish Teacher) »

"Hej! It often seems like the small words are the ones that cause the most confusion.…" READ »

 
 
 
Sponsored Article
How to find student housing in Malmö: 5 tips
Travel
Is this town the best place in Sweden?
Sponsored Article
Can you afford to live in Stockholm? (Hint: yes)
Gallery
People-watching: May 25th
Society
WATCH: Why Swedish handyman wore pink high heels for feminism
Sport
LIST: Top-ten ridiculous things Zlatan has compared himself to
Sponsored Article
Stockholm makes it easier for refugees to meet startups
Business & Money
Why Swedes don't want the euro
Sponsored Article
Food, fun, and reliable sun: Summer in Dubrovnik
Fastighetsbyrån
Gallery
Property of the week: Vika, Falun
National
Is this the most Swedish tattoo ever?
Sponsored Article
How Stockholm startups help new employees feel at home
Gallery
People-watching: May 20th-22nd
Sponsored Article
Why Stockholm attracts so many successful researchers
National
How to really annoy a Swede abroad
National
How this war veteran is warming hearts in Sweden
Sponsored Article
VIDEO: Why Malmö is the world's 6th best city for biking
Gallery
People-watching: May 18th
Sponsored Article
'Sweden gives artists the space to follow their dreams'
National
How this Swede's viral ad totally nailed Stockholm's housing crisis
Sponsored Article
Retiring abroad: ensuring your health is covered
Gallery
Property of the week: Vasastaden, Gothenburg
Sponsored Article
Can you afford to live in Stockholm? (Hint: yes)
Lifestyle
The best Swedish cities for dating
Sponsored Article
Why you should attend an international job fair
Gallery
People-watching: May 13th-15th
Culture
BLOG: Eurovision as it happened
National
Why a 116-year-old Swede isn't the world's oldest woman
National
Youth unemployment falls in Sweden
Gallery
People-watching: May 11th
Gallery
People-watching: May 6th-8th
3,357
jobs available
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:
psdmedia.se